You Need to Do an Insurance Review

We recognize that the social work profession is a noble one, founded on service, integrity, and clinical expertise. It is stressful—and becoming increasingly dangerous. Thank you for what you do!

The New Year marks the start of new and revised personal and professional goals. It is also an excellent time to complete another important initiative: conducting an insurance review. This is a security review designed to assess your risk exposures. The intent is to shift those risks to your insurance carrier.

First, think about your professional goals and planned activities for the new year compared to last year. This is what drives your liability insurance coverage needs.

Practitioners take on new modalities, practice in new locations, moonlight, and may add staff. The key to your security review is rooted in your—

RISK EXPOSURE … Existing and New

Here are some basic questions to help determine your liability insurance coverage needs for the new year:

1. Am I using contractors, full-time or part-time employees, or interns? Ask what coverage endorsements to your professional liability policy are available for these risks.
2. With the advent of the Interstate Compact, will I be working in states other than the state in which I am licensed? Preferra’s professional liability policy covers you at no additional charge. Other carriers may not cover you or may charge additional premium. Interstate Compact work can result in multiple licensing board complaints per incident, potentially doubling your legal defense costs.
3. Will I be delivering new professional services, modalities, or therapies? Review your policy exclusions and definitions section.
4. Will I be working in offsite venues such as fitness centers, home care settings, assisted living facilities, swimming pools, hotel conference rooms, field trips, clubs, employers, community centers, corporate campuses, office venues, or other clinical offices and settings? Review your general liability policy. Preferra covers these risks at no additional charge; other carriers often do not.
5. Will I be starting a new practice, working as an employee (including moonlighting), or serving as a contractor?
6. What job-related activities will I perform in my home or home office?
7. Who will visit my home because of my job, and how often? Be aware that most carriers—except Preferra—exclude general liability coverage for incidents involving non-clients who visit your office with your client. Additionally, many carriers do not cover slip-and-fall incidents involving clients when no professional services are being provided at that moment.
8. Is a portion of my home dedicated to a work office or work area? Many carriers charge additional premium for home-based offices. Preferra does not.
9. How am I handling client records? Do I use an external records vendor for storage, or a vendor who has access to my records while moving or handling files? This presents a third-party records breach risk that is typically excluded under professional liability policies. Preferra’s cyber liability policy covers this risk for as low as $54 per year.
10. What are my General Liability, Professional Liability, and Cyber Liability policy limits and sub-limits? What are my coverages, benefits, and exclusions?
11. What are my policy deductibles, policy fees, and premiums? Preferra has no deductibles and no policy fees. Insurance premiums are increasing across the market—often by 5% annually, and in some cases 10%. Preferra has had no rate increases in its history.
12. Are there any waivers outstanding, or that I anticipate issuing or signing? Waivers are particularly common when delivering professional services in alternative venues or for employers.

Regarding Preferra’s general liability policy: it continues to cover all acceptable modalities in any and all locations, with no office size limits, no common-area exclusions, and no limits on the number of offices—even across state lines in all 50 states—with no deductibles. Unlike competitors, there is no fire peril sub-limit in Preferra’s general liability policy.

Liability insurance policies vary when a loss involves a business invitee versus a homeowner’s guest. For example, hot coffee spilled on a business invitee in your home office may not be covered under your homeowner’s insurance policy. In that case, a commercial general liability policy would be required. Preferra’s general liability policy is extremely comprehensive, carries zero deductibles, and is significantly less expensive—approximately half the cost of most competitors.

Preferra’s cyber liability policy continues to protect insureds against all third-party perils listed by HIPAA and more. Again, unlike competitors’ policies, there are no deductibles.

Regarding waivers in the insurance market, here is what you should know. To “waive” something means to intentionally give up a right or interest. Waivers are frequently used to benefit the individual or organization requesting them. The purpose of a waiver is typically to avoid legal consequences arising from actions or inactions.

For example, a fitness clinic may require you to sign a waiver related to claims arising from physical therapies, aerobic classes, exercise training, sports activities, or field trips. This is another reason it is critical to maintain your own professional liability insurance policy.

Local or state laws may limit the enforceability of certain waivers, such as a parent signing away a minor’s rights. State laws may still impose liability for certain acts, regardless of any waiver intended to avoid vicarious liability. A waiver may not protect you if you require an employee to indemnify you. Additionally, you may require waivers from clients; however, enforceability depends on many factors, including the activity involved, the nature of the injury or damage, the age and capacity of the individual signing, and the qualifications of the staff conducting the activity.

In summary, during your insurance review this year, consider your professional goals, planned treatments, and therapy activities for the new year compared to last year. Then reconcile those plans with the insurance coverage you currently have in place to ensure you are adequately protected. You may be underinsured—or not insured at all.