How much does insurance cost for social workers?

Professional liability insurance, also called errors and omissions insurance (E&O insurance) or medical malpractice insurance, costs an average of $48 per month, or $579 annually, for social workers.

This policy covers the cost of malpractice lawsuits over claims that your social work services were unsatisfactory, negligent, or late.

For instance, if you missed a telehealth therapy session or failed to notice a child is in danger, a professional liability insurance policy would cover your legal defense costs, settlement, and other financial losses if the client sued over professional negligence.

Below is the average professional liability insurance policy for social workers who buy from Insureon:

Premium: $48 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $500

Several factors influence the cost of professional liability insurance, including the types of social work services you offer, your claims history, and the liability limits you choose.

As with other types of insurance, you can save money on professional liability coverage by choosing lower limits or a higher deductible.

Reducing your risks also helps you avoid claims and keep your premium low. This includes clear communication with clients and thorough documentation of all communications and agreements.

Licensed clinical social workers (LCSWs) pay an average of $29 per month, or $350 annually, for general liability insurance. This policy is sometimes called public liability insurance.

General liability insurance covers common third-party risks at social work businesses, such as a client who slips on a wet floor at your business and suffers a bodily injury, or accidental damage to a client's property.

For example, if you drop and break a client's smartphone while showing them mental health resources in their community, general liability insurance coverage would pay for the repair costs or legal fees if the client sues over property damage.

It also helps pay for attorney's fees and other legal expenses if someone sues your business over copyright infringement or other advertising injuries, including defamation.

Below is the average general liability policy for social workers who buy from Insureon:

Insurance premium: $29 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The per-occurrence limit is the maximum your insurer will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all covered claims during the policy period, typically one year.

General liability insurance costs depend on factors such as the coverage limits and deductible you choose, the types of professional services you offer, your business income, and any additional insured endorsements you select.

Learn more about how your insurance premium is calculated and how to save money on your general liability coverage.

Social service businesses pay an average of $51 per month, or $611 per year, for a business owner’s policy.

A business owner's policy, or BOP, bundles general liability coverage with commercial property insurance to cover both third-party risks and your business property. It typically costs less than purchasing each policy separately.

A BOP protects against customer injuries, property damage, and vandalism. It also covers damage to your business equipment, as well as your office or building. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents for those who rent or own an office or building.

This is the average BOP for social work professionals who buy from Insureon:

Insurance premium: $51 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Small, low-risk social work companies are often eligible for a business owner's policy.

Policyholders may see higher costs if they choose to add endorsements to their policy. Insurance endorsements, such as business interruption insurance or equipment breakdown coverage, are often recommended to help pay for lost income if a fire or power outage forces your business operations to cease for an extended period of time.

The cost of a business owner's policy is based on many factors, including the value of your business property, where you are located, the number of employees you have, and your specialty.

For social workers, the average cost of workers’ compensation insurance is $59 per month, or $707 annually.

This policy covers medical expenses and lost wages related to employee injuries. It usually includes employer's liability insurance to protect against lawsuits from workers who get injured or ill on a jobsite.

Businesses with employees typically must purchase workers' comp to comply with state requirements and avoid penalties. For example, all social work and therapy businesses in California, Pennsylvania, and New York must carry workers' comp if they have one or more full-time or part-time employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for independent contractors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims.

Small businesses, including social work companies, spend an average of $145 per month, or $1,740 per year, on cyber insurance. This policy is also called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps social workers and other healthcare professionals recover financially after a cyberattack or data breach. It can cover data breach investigations, cyber extortion payments, and costs related to complying with your state's data breach laws.

A cyber liability insurance policy is especially crucial for social work companies that store information protected by HIPAA and other sensitive client information, such as credit card numbers, phone numbers, and email addresses.

The cost of cyber insurance and the coverage you need depend on the amount of sensitive information you handle at your social work business.

Small business owners, including social workers, pay an average of $147 per month, or $1,762 per year, for commercial auto insurance.

This type of insurance pays for legal costs and medical bills if your social service company vehicle injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance for vehicles owned by a social work business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on several factors, including your policy limits, the coverage options you choose (e.g., additional insured endorsements), the number and value of your vehicles, and the driving records of anyone permitted to drive.