Insurance

Social Workers Professional & Office Liability Insurance

WISCONSIN ACT 80 AND MALPRACTICE INSURANCE – Wisconsin Act 80 requires that licensed clinical social workers, marriage and family therapists, and professional counselors must obtain professional liability insurance in order to practice clinical social work, marriage and family therapy, or professional counseling.  This requirement, however, does not apply to persons practicing clinical social work, marriage and family therapy, or professional counseling as an employee of a federal, state, or local government agency.  In addition, the requirement does not apply if a LCSW, LMFT or LPC is not currently practicing clinical social work, marriage and family therapy, or professional counseling.

The minimum amount of insurance required is $1,000,000 for each occurrence and $3,000,000 for all occurrences in one year.  In some cases agencies obtain malpractice insurance on behalf of their employees and the question has arisen, do the employees still need to obtain their own malpractice insurance in addition to their agency’s malpractice insurance?  Unfortunately, neither the law nor the rules address this question.  At this time, however, the attorney for the Department of Regulation & Licensing is telling licensees that their agency’s malpractice insurance would meet the standards established by Wisconsin Act 80.  On the other hand, NASW’s Insurance Trust Department has always advised NASW members to obtain their own personal malpractice insurance in addition to their agency’s malpractice insurance