Nurse Insurance: When To Carry Liability Coverage

Nursing is a profession that involves providing medical and personal care to individuals at their most vulnerable. Nurses are human, and, as with any profession, they can make mistakes. Nurses are at risk of litigation or state board of nursing action against them. They can be sued for many reasons, including failure to follow orders, practicing outside their scope of practice, failure to recognise an order error, failure to adequately monitor and assess patients, and failure to communicate or notify pertinent information about a patient in a timely and proper manner.

Nurses should consider carrying their own liability insurance to protect themselves from litigation. While nurses are often automatically included in their employer's group policy, this insurance acts in the interest of the employer. Nurses with their own insurance policy are guaranteed to have someone representing them if they ever face allegations. An individual policy also clearly identifies what is covered and what the monetary limitations for litigation awards would be.

Nurses are human and can make mistakes

Nursing is a profession that involves providing medical and personal care to individuals at their most vulnerable. Nurses are human, and, as with all humans, they can make mistakes. Nursing malpractice insurance is a type of insurance that provides nurses with protection when a patient (or their representative) brings legal action against them. This can include claims of negligence, omission of appropriate care, or errors committed during nursing practice that lead to injury, loss, or death.

Nurses have a high level of contact with patients and are involved in patient care 24/7, which means they carry a great deal of potential liability. While most nurses are covered by their employer's insurance, this insurance primarily protects the hospital's liability, and there may be gaps in coverage. For example, employer insurance may not cover incidents outside the scope of a nurse's job description or incidents that occur after the nurse has left their employment.

Additionally, employer insurance may not provide legal representation for disciplinary cases or complaints brought to the State Board of Nursing, which can be costly and time-consuming. Individual malpractice insurance can provide nurses with their own legal representation and protect them from financial ruin, even if they are found to be not guilty of any wrongdoing.

Furthermore, individual malpractice insurance can offer additional benefits not usually included in employer policies, such as coverage for assault, first-aid expenses, violations of the Health Insurance Portability and Accountability Act, libel or slander, and property damage. It is important to note that individual insurance does not increase the chances of being brought into litigation, as insurance status is not public information.

Nurses should carefully consider the benefits of having their own malpractice insurance to protect themselves from potential litigation and ensure their interests are adequately represented. While it may be an added cost, the peace of mind and protection it provides can be invaluable.

Individual policies protect nurses from actions taken by the Board of Nursing

Nurses are pivotal to patient care and carry a great deal of liability on their shoulders. They are at risk of litigation every time they go to work, and while their employers' insurance policies may offer some protection, these policies are designed to protect the hospital's liability first and foremost.

Individual policies, on the other hand, belong to the nurse and follow them wherever they work. They clearly identify what is covered and what the monetary limitations are for litigation awards. Importantly, individual policies also protect nurses from actions taken by their Board of Nursing, including disciplinary cases and board investigations.

The Board of Nursing has the authority to regulate nursing practice and protect citizens' health, safety, and welfare against substandard nursing care. Each state in the US has its own Board of Nursing, which enforces the laws defined by the Nursing Practice Act (NPA). The NPA provides guiding principles and standards for nursing regulation, including defining the scope of nursing practice, overseeing licensure processes, and providing grounds for disciplinary actions for violations.

Complaints to the Board of Nursing are generally not covered by a hospital or employer plan. As a result, nurses risk losing their license if a complaint is filed, even if they are covered in a lawsuit. By purchasing an individual policy, nurses can protect themselves not just in the case of a lawsuit but also against complaints to the board.

In disciplinary cases and board investigations, an individual policy provides nurses with legal representation and defence. This is a significant benefit, as disciplinary proceedings can be costly and time-consuming. Having an individual policy ensures that nurses have access to an attorney who will represent their interests and protect their license.

Nurses who are named as defendants in a professional negligence case or accused of violating the nurse practice act, breaching a contract, or breaching patient confidentiality, can benefit from the protection offered by individual liability insurance policies.

Therefore, it is highly recommended that nurses consider obtaining their own individual professional liability insurance to safeguard their careers and protect themselves from potential liabilities.

Nurses are pivotal and carry a great deal of potential liability

Nurses are pivotal in providing patient care and carry a great deal of potential liability. They are often the first and most frequent point of contact for patients and their families, and they interface with all key components of healthcare teams. This level of involvement means that nurses are at risk of litigation, even if they have not made a mistake. For example, a patient who perceives wrongdoing can initiate litigation, causing financial harm to nurses who have done nothing wrong.

Nurses are human, and they can make mistakes. They can also be sued for omissions or for a certain patient outcome, even if that belief is incorrect. Nurses can also be sued by patients who haven't suffered damages but are seeking a settlement. In these cases, an individual malpractice insurance policy can provide peace of mind and protect against financial ruin.

Nurses should not rely solely on their employer's insurance coverage. There may be gaps in the policy, and it may not adequately cover all risks. For instance, if the incident that led to a lawsuit is outside the scope of a nurse's job description or falls within a policy exclusion, the employer may refuse to defend or even bring a counterclaim against the nurse. An employer's policy also protects the hospital's liability first and foremost. Under this type of insurance, nurses share the liability limitations with every other employee named in the litigation. This shared limit means there may not be enough money to cover the full settlement, resulting in potential out-of-pocket legal expenses for the nurse.

Additionally, an employer's policy protection for nurses usually ends when their employment ends, meaning a nurse can still be held liable even if they are working elsewhere when the lawsuit is filed. An individual policy, on the other hand, belongs to the nurse and will follow them wherever they work. It will also clearly identify what is covered and the monetary limitations for litigation awards.

An individual policy protects a nurse from litigation resulting from well-intended advice

Nursing is a profession that involves providing medical and personal care to individuals at their most vulnerable. Nurses are only human, and they can make mistakes. They can also be sued for a range of other reasons, including failure to follow orders, practicing outside their scope of practice, failure to recognise an order error, failure to adequately monitor and assess patients, failure to communicate, report or notify pertinent information about a patient in a timely and proper manner, and wrongful delegation of a nursing function.

Nurses are often considered "independent contractors", which means they are excluded from the coverage purchased by the doctor. An individual policy protects a nurse from litigation resulting from well-intended advice given to colleagues, friends, and family members. This is important because nurses are often casually asked for health-related advice. An individual policy would protect a nurse even if the advice given leads to someone pursuing a course of action (or not pursuing it) that results in perceived or actual harm.

An individual policy also protects nurses from actions taken against them by their Board of Nursing. Legal representation in this instance would be covered by the policy as well. Many advanced practice specialty nurses would be unwise to practice without it, such as nurse midwives, nurse anesthetists, and nurse practitioners.

An individual policy belongs to the nurse and clearly identifies what is covered and what the monetary limitations are for litigation awards. Most importantly, individual policies held by nurses will follow them wherever they may work, even if they are a travel nurse or self-employed.

Nurses should not assume that they are covered by their employer and should inquire with their employer about the limitations of liability. While it's nice when an employer provides coverage under a group policy, having a policy that only applies to you has benefits. You are the only one who is covered under your personal policy, which means you have access to additional limits and other policy protections.

Nurses are often considered independent contractors, making them excluded from the coverage purchased by the doctor

Nurses are often considered independent contractors, but this classification is not always accurate. In the healthcare field, it is more common for doctors, dentists, and advanced practice registered nurses to meet the requirements for independent contractors.

When determining whether a worker is an independent contractor or an employee, the IRS considers the degree of control the payer has over the worker. If the payer can control or direct the result of the work and how it will be done, the worker is an employee. If the payer can only control or direct the result of the work, then the worker may be an independent contractor.

In the case of nurses, the contracted facility often determines more than just the outcomes of the work. For example, the facility decides the nurse's working hours and break times, and the nurse uses the facility's supplies and equipment. Additionally, nurses are supervised by doctors and managers at the facility and must seek a physician's permission for decisions outside their scope of practice. These factors often lead to nurses being classified as employees rather than independent contractors.

However, some agencies and hospitals still treat nurses as independent contractors. One reason for this is that it is easier for the payer. When an agency treats a nurse as an independent contractor, they avoid dealing with payroll taxes, worker's compensation, disability, and unemployment. They also don't have to manage the complicated compensation packages that travel nurses receive. Instead, the agency pays an hourly rate to the nurse, who is then responsible for expenses such as liability insurance.

Being classified as an independent contractor can create additional challenges for nurses. Independent contractors are essentially running their own business and are responsible for self-employment taxes, quarterly estimated tax payments, annual tax returns, and keeping detailed accounts of income and expenses. They may also need to invoice the agency or hospital and ensure they receive payment, which can sometimes be a challenge.

Furthermore, independent contractors are often responsible for purchasing their own benefits and professional insurance. If their coverage doesn't align with the potential liability they bring, the healthcare facility may need to cover the difference. This can create liability risks for the facility.

Therefore, it is important for nurses to understand their employment classification and ensure they have adequate liability insurance coverage. While an employer's policy may provide some protection, it primarily protects the facility's interests, and nurses may be left vulnerable. Individual policies, on the other hand, belong to the nurse and provide clear coverage that follows them wherever they work.

Frequently asked questions