What is nurse liability insurance, and do I need it?

Nurses play a crucial role in patient safety and care, whether working in hospitals, clinics, or aged care facilities. Their duties can include a vast range of responsibilities, from overseeing medication administration and diagnostic tests to providing emotional support and collaborating with other professionals for optimal outcomes.

However, the healthcare industry is often a fast-paced, high-stress working environment. Even the most diligent nurses can sometimes make mistakes, and accidents happen.

This is why many nurses, including registered nurses (RNs), licensed practical nurses / licensed vocational nurses (LPNs/LVNs), and nurse practitioners (NPs), opt to take out nurse liability insurance. It is also sometimes referred to as medical malpractice insurance or Professional Liability insurance.

What is nursing malpractice insurance?

Nurse liability insurance helps to protect nurses against legal claims related to the care that they provide their patients.

This type of insurance is designed to help cover legal fees, as well as judgments and settlements, should a claim be brought against the insured because they have been accused of failing to provide appropriate care.

Liability policies usually cover the following:

• Legal defense costs, including attorney fees and court expenses.
• If found responsible, damages or settlements that could be applied against the insured.
• License protection, such as legal representation.
• HIPAA violation defense strategies.

Does an employer’s Professional Liability insurance cover nurses?

Most healthcare organizations carry their own Professional Liability insurance. However, this coverage is designed to protect the employer first, not necessarily the individual nurse. That means there are some important limitations:

• Coverage is limited: Hospital or clinic policies generally cover you only while performing duties for that employer.
• Not valid everywhere: If you volunteer at another facility, take on part-time work elsewhere, or provide care outside of your primary job, you may not be covered.
• Licensing board complaints: Employer policies usually don’t protect you if you face an investigation from the nursing board.
• Not portable: Coverage ends when you leave your job. If a claim arises after you’ve moved on, you could be left unprotected.

Because of these gaps, many nurses choose their own liability insurance. Personal coverage can:

• Travel with you across jobs, volunteer work, or private care.
• Provide protection for board hearings and license defense.
• Give you an added layer of security beyond what your employer provides.

Do nurses need malpractice insurance?

Nurses may wish to consider malpractice insurance to help protect them from claims.

Having a claim brought against you can be an incredibly stressful situation. Even if the allegations are false, you may still find yourself having to pay legal fees and defense costs. In addition, even if the claim is unsuccessful, your reputation could be brought into question and your license reviewed.

In an increasingly litigious society, having adequate malpractice insurance can give you peace of mind so you can focus on doing your job to the best of your ability.

Nursing malpractice insurance can benefit a variety of nurses

There are many different types of nurses, all of which may benefit from Professional Liability insurance. This includes:

• Registered nurses
• Clinical nurse specialists
• Visiting nurses
• nurse practitioners
• Certified nursing assistants (CNAs)
• Licensed vocational nurses
• Licensed practical nurses
• Certified registered nurse anesthetist (CRNAs)
• Nursing schools and businesses
• Nursing students
• Midwives
• Travel nurses
• Aesthetic nurses.

What does nursing liability insurance cover?

Nursing liability insurance generally covers the following:

• Defense counsel and legal fees
• Settlement and claims costs
• Lost wages and travel expenses
• HIPAA violations
• Defense for licensing boards
• Good Samaritan coverage
• Reputation protection
• Assault coverage
• Personal injury coverage
• Non-patient medical expenses.

Types of nursing malpractice insurance policies

Insurance policies come in a few different available types. These include occurrence-based, claims-based and claims-made.

Generally speaking, Professional Liability insurance is always claims-made. This means that coverage only applies if the policy is active both when the alleged incident occurred and when the claim is filed. Maintaining continuous coverage ensures that there are no gaps in coverage for nurses.

What to look for in a nursing malpractice insurance policy

Finding the right nursing liability insurance to suit your needs does not need to be a long and difficult process. Following these simple steps should help you find a policy that offers adequate coverage.

1. Evaluate your risks

To effectively evaluate risks at work, first assess where you work and what you do. Do you work in high-risk fields such as pediatrics or emergency care? Are you an independent contractor, or do you work across multiple locations?

2. Assess your limits

Standard Professional Liability provides coverage limits of $1 million per incident, $2 million yearly aggregate. Some nurse Professional Liability policies offer a $3 million aggregate to meet common Medicaid requirements. Contractual requirements should always be considered when determining liability limits.

3. Be aware of exclusions

Be aware of what your policy does and does not cover. Some policies exclude acts committed outside of the U.S. or intentional wrongdoing as potential exemptions.

4. Consider flexible solutions

As your career evolves, so will your insurance needs. Ensure your provider allows for easy upgrades and modifications so they can meet the changing responsibilities associated with nursing.

5. Compare policies

Different providers offer differing levels of protection. Once you have done your research and understand what you want from your policy, you can compare different products and make an informed decision. Platforms like BizInsure allow you to quickly and easily compare different policies from leading insurance providers, so you can get covered in minutes.

BizInsure can help make insurance simple

Nursing is a rewarding but high-risk profession, and relying solely on an employer’s insurance can leave critical gaps in protection. Having your own nursing malpractice insurance provides peace of mind, safeguards your license, and ensures you’re covered.

BizInsure understands the challenges that nurses face in their day-to-day job roles. Compare, buy, and renew insurance online through our online platform in minutes.