Preferra Lawsuit
FAQ
What is the status of legal action between Preferra Insurance Company RRG (“Preferra”), NASW, ASI and NASWIC?
NASW Assurance Services, Inc. (ASI) and NASW Insurance Company, Inc. (NASWIC) filed a legal action in U.S. District Court for the District of Columbia on December 17, 2024, in response to a lawsuit filed by Preferra Insurance Company Risk Retention Group. The ASI and NASWIC counter suit refutes charges Preferra made in September and specifically outlines concerns NASW had about the way our insurance subsidiary was being managed.
Further information about the case is available on the ASI website. NASW members who want updates on the litigation can review the case documents (Case No.: 1:24-cv-02689), which is a matter of public record. PACER and Law 360 are two options for accessing court records.
Who are the parties involved in the Preferra lawsuit?
In addition to NASW, the defendants are NASW Assurance Services, Inc. (“ASI”) and NASW Insurance Company (“NASWIC”). ASI is a subsidiary of NASW. It was created to perform the marketing and administrative services for the insurance enterprise. NASWIC is a subsidiary of ASI, and it is a captive insurance company.
In 2012, ASI and NASWIC pooled over $10 million in capital to create NASW Risk Retention Group (“NASWRRG”), which in 2023 changed its name to Preferra. ASI and NASWIC created NASWRRG to make it easier for NASWIC to provide professional liability insurance coverage for social workers, many of whom are NASW members, and to allow more control over the program.
NASW has always been committed to advancing the interests of social workers and providing them with the support and peace of mind they need to serve their communities.
Why did Preferra sue NASW, ASI and NASWIC?
Although ASI and NASWIC funded NASWRRG (now known as Preferra), tensions have existed between the parties for many years. The Preferra complaint asserts many unfounded and unsubstantiated claims, including allegations of breaches of contractual and business obligations. Legal action filed by NASW's insurance program in December 2024 seeks to dismiss the original case as false and frivolous. NASW will vigorously defend against all false and unsubstantiated claims, and we believe we will prevail in court. For more information: ASI and NASWIC Files Legal Action | NASW Assurance Services
What should social workers do for professional liability insurance?
While we are deeply disappointed in this disruption to our program, social workers have many options for professional liability insurance and should explore the best services to meet their needs. Renewing your current malpractice insurance plan may be your best option. Social workers should also contact ASI Customer Care Unit at 855-385-2160 or go to www.naswassurance.org for more information about professional liability insurance and other kinds of insurance. New products are in development.