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Preferra Lawsuit

FAQ

Is NASW being sued by Preferra Insurance Company RRG (“Preferra”)?

Yes. On Friday, September 20th, Preferra filed a lawsuit against NASW and other entities.


Who are the parties involved in the 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 is Preferra suing NASW, ASI and NASWIC?

Although ASI and NASWIC funded NASWRRG (now known as Preferra), tensions have existed between the parties for many years. The complaint asserts many unfounded and unsubstantiated claims, including allegations of breaches of contractual and business obligations. As the matter is currently being litigated, we are unable to discuss pending litigation. However, NASW will vigorously defend against all false and unsubstantiated claims, and we believe we will prevail in court.


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 may 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.