Nurses: Malpractice Insurance—Why It's Necessary

Nursing malpractice insurance is a type of insurance that provides nurses with protection when a patient (or their representative) brings legal action against them. Although malpractice claims are often associated with physicians, nurses can also be accused of malpractice. Nurses can be sued for errors, violating the standard of care, or failure to meet the standard of care. While some nurses believe that malpractice insurance is unnecessary, others consider it a necessity for their profession. The number of malpractice payments from nurses is rising, and nurses are increasingly being named in lawsuits. Malpractice insurance can provide peace of mind and protect nurses from financial ruin in the event of a lawsuit.

Nurses' malpractice insurance is relatively inexpensive

Nurses malpractice insurance is relatively inexpensive, costing on average about $100 per year for $1,000,000 of coverage. This figure can vary depending on factors such as location, type of work, years of experience, level of education, and the number of hours worked.

The low cost of nurses' malpractice insurance is surprising given the high average payout of medical malpractice claims, which can exceed $200,000. The low cost is also surprising given the upward trend in the number of malpractice suits filed against nurses.

The relatively low cost of nurses' malpractice insurance can be explained by the relatively small number of claims against nurses. However, this number is rising, and the cost of defending oneself against a malpractice suit can be financially disastrous.

Nurses can choose between two types of malpractice insurance policies: claims-made and occurrence-type. Claims-made policies are less expensive but leave nurses vulnerable to claims submitted after the policy has expired. Occurrence-type policies offer more extended coverage at a higher price and cover incidents that occur during the policy period, regardless of when the claim is reported.

Ultimately, the decision to purchase malpractice insurance is a personal one, depending on factors such as risk tolerance and the desire for peace of mind.

It covers nurses against claims of errors made while performing their job

Nurses can make mistakes from time to time, and even the smallest mistakes can cause horrific physical, emotional, or financial harm to a patient. In such cases, malpractice insurance can be a critical recourse for nurses. Malpractice insurance helps cover nurses against claims of errors made while performing their job.

Malpractice insurance is a type of professional liability coverage. If a nurse causes accidental harm to a patient, they might have to cover the damage. A successful malpractice claim can help cover the claimant's needs and protect both the individual responsible for the damage and the practice they work for.

Malpractice coverage can help in the event of multiple instances of patient harm, including medical errors, procedure mistakes, or problems stemming from improperly documented test results. It can also help cover legal defence costs and attorney fees, as well as medical or punitive damages.

Types of malpractice insurance policies

There are two main types of malpractice insurance policies: occurrence policies and claims-made policies. Occurrence policies cover incidents as long as they occurred while the policy was active, regardless of when a claim is made. Claims-made policies, on the other hand, only cover claims made during the term of the policy for accidents that happened during that same term.

Cost of malpractice insurance for nurses

Most nurses can get $1 million of coverage for approximately $100 per year. The cost of malpractice insurance depends on factors such as location and type of work.

Even if a nurse's employer has liability insurance, there may be limitations to the coverage, and the nurse may not be fully protected. Private nursing malpractice insurance can provide additional protection if the employer's coverage is insufficient or if the nurse faces an individual lawsuit. Additionally, there may be conflicting interests between the company and the employee, and the company's insurance will prioritise the company's best interests.

It's not public information whether a nurse has insurance or not

Nurses are at risk of litigation or state board action against them and malpractice insurance can help protect them in these cases. However, whether or not a nurse has insurance is not public information. Nurses are often covered by their employer's policy, but this may not cover them in all situations, and some employers may require nurses to have their own insurance.

Nurses 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, failure to communicate or provide pertinent information about a patient, and wrongful delegation of a nursing function.

There are two main types of malpractice insurance policies: claims-made and occurrence-based. Claims-made policies cover incidents and claims that occur during the policy period. Occurrence-based policies cover incidents that occur during the policy period, regardless of when the claim is reported.

The cost of insurance depends on the nurse's past history of legal action and the risk associated with their area of practice. Nurses working in emergency departments, intensive care, pediatrics, or labor and delivery will pay higher premiums due to increased litigation risk.

While it is not public information whether a nurse has insurance or not, it is important for nurses to understand their options and make informed decisions about their coverage.

Nurses can be sued for malpractice based on their own acts and omissions

Nurses are required to adhere to the standard of care, which is a legal term for the level of skill, knowledge, and care in diagnosis and treatment that other reasonably careful nurses would use in the same or similar circumstances. A breach of the standard of care occurs when a nurse fails to act as an ordinarily prudent nurse would under similar circumstances.

Some examples of how a nurse's error might equate to malpractice include:

• Inadequate monitoring or observation of a patient
• Failing to respond to a patient's call for assistance in a timely manner
• Improper medical record-keeping
• Administering the wrong medication or the wrong dosage
• Failing to take fall precautions to preserve a patient's safety
• Failing to properly communicate discharge instructions

While doctors often have oversight authority over nurses, a nurse can still be held individually liable for a mistake in treatment. Even if a doctor or other medical professional has ultimate responsibility for certain tasks, it is usually the nurse that must carry out the doctor's orders.

For example, in the case of a surgical sponge left inside a patient, the nurse is responsible for counting the sponges and notifying the surgeon if there is a discrepancy. If a patient is harmed as a result, the nurse could be liable for malpractice.

In addition to individual liability, nurses may also be covered by their employer's malpractice insurance policy. This is typically the case if the nurse is an employee of the hospital or medical facility. However, it is important to note that employer policies may have gaps or exclusions, and it is recommended that nurses review their employer's policy to understand their coverage.

To protect themselves from the financial and legal consequences of malpractice claims, nurses may consider obtaining their own professional liability or malpractice insurance. This type of insurance helps cover nurses against personal claims of violating the standard of care, whether in a civil lawsuit or with their state board of nursing. While the decision to purchase malpractice insurance is a personal one, it is important for nurses to understand the risks and potential consequences of malpractice claims.

Nurses who are not employees need professional liability insurance

Nurses can get sued for many reasons, including failure to follow orders, failure to recognise an order error, failure to adequately monitor and assess patients, and wrongful delegation of a nursing function. Even if a nurse hasn't made a mistake during treatment, they can still be sued and be legally obligated to pay a covered claim.

Professional liability insurance is critical for nursing professionals, and some states require nurses to carry it. This insurance can help protect different types of healthcare professionals, like clinical nurse specialists, licensed vocational or practical nurses, and certified nursing assistants.

If a nurse is an employee, their employer's policy will cover them, but this is not always the case. Nurses who are not employees, or who work outside of their employment, need their own professional liability insurance. This includes those who are self-employed, or who volunteer in activities outside of their employment.

Individual liability insurance offers many advantages. It can protect nurses 24 hours a day, both on and off the job, and some policies include additional benefits such as coverage for volunteer work, HIPAA violations, and libel or slander.

Nurses who are not employees should carefully review the coverage offered by any professional liability insurance policy, to ensure they understand what it provides.

Frequently asked questions