As a nurse, your primary focus is always on providing safe, compassionate, and effective care for your patients. However, healthcare can be a complex and unpredictable environment to work in. No matter how diligently you work, errors and accidents can happen.
Many nurses assume that the coverage provided by their employer is enough to shield them from claims, lawsuits, or complaints. While hospital insurance can offer some protection, the truth is a little more complicated. Essentially, what it comes down to is the fact that employer policies are designed with the hospital’s interests in mind, not necessarily yours.
What is hospital-provided liability coverage?
Hospitals and other healthcare facilities typically have Professional Liability insurance that extends to the organization and its employees. This type of coverage is meant to protect the institution if a patient files a claim of negligence, error, or omission.
While nurses may benefit indirectly from this coverage, it’s important to understand that these policies are employer-owned and structured to safeguard the hospital first and foremost.
Who and what is covered by hospital insurance?
Hospital-provided liability insurance generally covers nurses and other staff while performing duties within the scope of their employment. For example, if a nurse administers medication as part of their assigned responsibilities and an error leads to a patient claim, the hospital’s insurance may be triggered.
However, this protection is tied directly to the hospital’s interests. You’re covered because defending you also defends the institution. It’s important to remember that the moment your needs diverge from the hospital’s priorities, the limits of the coverage will become clear.
4 Key limitations of hospital coverage
Hospital-provided liability insurance may give nurses a sense of security, but there are important gaps that are often overlooked. These are just some of the key limitations of hospital coverage.
1. Limited scope of protection
Hospital insurance typically applies only while you are performing assigned duties within the scope of your employment. This means that activities such as volunteering at a clinic, providing informal advice outside of work, or working part-time for another employer are not covered. If a claim arises from these situations, you may be left entirely responsible for your own defense.
2. Not portable
Employer-provided coverage usually ends the day you leave your job. This means that claims filed after your employment ends may not be covered. For example, if a patient files a lawsuit months after you’ve moved to a new facility, you could find yourself without protection.
3. Employer interests come first
It’s important to remember that hospital liability insurance exists to protect the organization, not the individual nurse. Attorneys assigned to your case are paid by the hospital and are legally obligated to act in the hospital’s best interest. This can create a conflict if your personal defense strategy differs from what the hospital deems best. In some cases, settlements may be made to limit the hospital’s financial exposure, even if it negatively impacts your professional reputation.
4. Risk of losing your license
Another major shortcoming is that many hospital policies do not cover licensing board complaints. This is significant because boards of nursing investigate independently from civil lawsuits, and their decisions can determine whether or not you can continue practicing. Defending yourself in front of a licensing board often requires specialized legal counsel, which can be costly without your own insurance policy. A single patient complaint – whether valid or not – can trigger a review by the board of nursing.
Why individual Professional Liability insurance matters
Hospital-provided coverage may offer some protection, but it leaves significant gaps that could put your career and financial future at risk. This is where Professional Liability insurance (also sometimes called medical malpractice insurance) comes in.
A personal Professional Liability policy is deigned to protect you – not your employer – against claims. It provides coverage that follows you wherever you work, whether you’re employed at a hospital, volunteering at a community clinic, or taking on contract assignments. It also includes protection in areas that hospital insurance often overlooks, such as licensing board complaints, depositions, and disciplinary hearings.
Differences between individual Professional Liability insurance and hospital-provided insurance
This simple table quickly and easily breaks down the differences and benefits of having your own personal Professional Liability insurance.
| Coverage feature | Hospital coverage | Individual Professional Liability insurance |
|---|---|---|
| Legal defense for job-related claims | YES | YES |
| Coverage when working outside job scope | NO | YES |
| License defense before a board | NO | YES |
| Follows you between employers | NO | YES |
| Control over legal representation | Hospital’s decision | YES |
| Covers volunteer or part-time work | Not typically | YES |
| Customizable limits | NO | YES |
How BizInsure can help nurses protect themselves
Ultimately, investing in your own Professional Liability insurance is an investment in your career and future. By reviewing your current situation and considering personal Professional Liability insurance, you’re providing yourself a safety net in case the worst should happen – no matter how careful and conscientious you are.
If you’re a nurse looking to quickly and easily compare Professional Liability insurance, BizInsure can help. We make it easy to find and compare affordable insurance for nurses from leading insurance providers. We understand the unique risks healthcare professionals face, and our goal is to make the process of securing coverage as simple and transparent as possible.
Compare insurance policies today with BizInsure.
