As a social worker, you provide guidance and support to others. Whether you’ve set up a private practice or are working in the public sector, it’s important to know how you can be supported. One answer is business insurance..
Business insurance helps provide the protection you need to be able to operate a safe and successful practice. It’s also full of complicated jargon, which can make even the basics difficult to understand.
If you’re baffled by insurance terms, don’t fret. We’re here to make it simple. In this article, we’ll review key insurance concepts in clear language so you can make the best decisions for your business.
Common Insurance Terms Explained
Understanding the benefits of small business insurance is hopefully the easy part. It’s the vocabulary that can be confusing.
Let’s start with this simple crash course:
Premium: The regular payment made to an insurance company for the insurance policy coverage.
Deductible: An amount the insured typically must pay out of pocket before insurance coverage kicks in.
Policy Limit: The maximum amount an insurance company will pay for a covered claim.
Coverage: The specific risks or events an insurance policy protects against.
Exclusions: The specific risks or events an insurance policy does not cover.
Claim: A formal request to an insurance company for payment of a covered loss or event.
Liability: Responsibility for damages or injuries caused to another person or their property.
You can find all of these terms and more in our Business Insurance Glossary, which was written to help people who don’t work in insurance understand all of our complex terminology. Knowledge is power, after all, and in the spirit of helping others, we strive to make insurance digestible for everyone.
Key Insurance Concepts for Social Workers
Above, we gave you the basics of insurance terminology. In the following list, we’ve done our best to break down the different kinds of coverage that might be beneficial in your world as a social worker.
Professional Liability Insurance
Your role is to help people, but what if a client claims your advice or actions caused them harm? Professional liability insurance (PL) can help cover you and your business if a client sues you for negligence, errors, or omissions. Even if a claim is untrue, the legal costs of defending against it can be substantial. A PL policy protects you financially (up to your policy limits) so you can stay focused on helping others.
General Liability Insurance
Whether you rent an office space or visit people in their homes, general liability insurance (GL) is essential. It can cover costs as a result of third-party accidents, damage to third-party property, and bodily injury to a third party. For example, if a client were to trip and fall in your office, they could sue for medical expenses and other damages. GL insurance can help safeguard your practice from the financial effects of costly lawsuits.
Cyber Liability Insurance
Protecting your clients’ sensitive personal data is crucial, making cyber liability insurance a key insurance concept for social workers. This coverage helps mitigate the risks of data breaches and cyberattacks, covering data recovery costs, legal actions, and other related expenses.
How to Choose the Right Insurance Coverage
Thinking about taking the next step with social work insurance? We can help!We partner with insurers specializing in small business coverage to offer a range of policies tailored to your needs. We’ve helped insure over 1 million small business owners worldwide. You can get a social worker business insurance quote with our fast and easy online process, in just 10 minutes. We also have agents available to answer your questions, Monday through Friday, 8 a.m.-8 p.m. (ET), at 844-654-7272.
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Insurance Simplified
If you were happy with our glossary, we’d love to introduce you to our Resource Center, where you can access guides, tools, tips, and additional articles.
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