Should I Carry Nursing Malpractice (Liability) Insurance?

[sirI]

This question comes up frequently and is asked of me quite often, "should I carry malpractice protection?"

What is Malpractice?

Simply put, it is a failure to adhere to a standard of care or conduct by a professional such as a Physician, Nurse, Attorney, etc. Malpractice occurs when it can be proven that the professional had a duty to provide a standard of care/conduct, breached that duty, an injury or damage resulted, and the injury/damage was caused by the breach.

No matter how educated, confident, and careful the Nurse is, unintentional mistakes can and will happen. Accidents will occur. And, unfortunately, willful neglect can be an issue. Injury and death very often are the results of mistakes, accidents, and neglect. Families want to know what happened. Even in the best scenario, the Nurse feels embarrassed and ultimately fears what the damage could do to a perfect professional reputation. Nurses must have the option of protecting their professional reputations and personal assets. Having individual Liability Insurance is a smart solution.

Nurses will often make the following statement

Quote

My employer covers me so I don't need my own malpractice/liability policy.

Yes, your employer's policy may cover you, but only up to a point. Remember: Your employer's policy is created to fit their specific needs and protects them first. You may even be told (by your employer HR) that you do not need your own policy. What they do not tell you is that they want you to be represented by their attorneys. They do not want "outside" representation for they know that their best interests will not be first and foremost.

All malpractice liability insurance policies have limits of liability. If you are only covered by your employer's insurance, other defendants employed at your entity may and probably do share your liability limits under the same policy. If you, as well as others, are named in a suit, your legal costs, including any settlement, could exceed your employer's shared liability limits. This would mean out-of-pocket expenses for you.

Quote

What type of policy and how much coverage do I need as a Nurse?

These are questions that are very important when considering a policy.

Two Popular Policies

• Occurrence-based - any covered incident occurring while the policy is in effect even if the policy is now canceled and/or you have retired
• Claims-made - any covered incident only while the policy is in effect

The cost of a policy is economical and reasonable. For example, the annual premium could cover the first hour billed by Attorney. $1,000,000/$6,000,000 coverage premiums are approximate $100/year in most states for the Registered Nurse (RN) as well as for the Licensed Practical/Vocational Nurse (LPN/LVN).

Links of Interest

• CM&F Nursing Medical Malpractice Program
• American Nurses Association
• Nurses Service Organization

One major benefit of an individual policy that is often overlooked or taken for granted when considering coverage is license protection. Nurses need to be aware that this will extend beyond their employer's coverage and includes discipline issues that can be brought up by the individual Nurse's Board of Nursing (BON). Many Nurses do not have the financial ability to go against the BON, therefore, license protection is a must.

Another all-important beneficial consideration is that policies normally will include coverage regarding libel, slander and patient confidentiality, including HIPAA issues. These issues can be troublesome and include a great cost for the Nurse.

Finally, a common statement that is incorrect and based on myth ...

Quote

Malpractice liability insurance will make me a target and I'll be named in a lawsuit.

When being named in a lawsuit, no one knows you have your own personal policy unless you have revealed this information. Only after a lawsuit is filed and only during the period of the discovery phase is this information available.

So, do you carry your own individual malpractice/liability insurance? In the end, the question of whether or not the Nurse should carry malpractice/liability insurance is a personal one and should be seriously considered.

The peace of mind knowing that you are covered is overwhelming.

The peace of overwhelming reassurance.

[jjdennis1279]

Interestingly enough, I think this is a topic discussed on the Saunder's NCLEX review book.

Does anyone have any suggestions for how to compare the quotes from these different insurance provider's? I'm beginning to feel a little overwhelmed by the accumulating annual costs of being a nurse.

[Titanic777]

elkpark said:

... many employers throw individual RNs under the bus in order to protect the facility -- this is what their attorneys (the ones who would also be advising you if you depend on your employer) tell them to do -- when it was often quite obvious, from reviewing the records and interviewing the parties involved, that the only thing the RN had done wrong was have the bad luck to be assigned to that particular client on that particular day ... The hospitals would single out one or more RNs they could "blame" for the incident, and then promptly fire them to show their good faith ("golly, we had no idea we had such a dangerous and incompetent nurse on our staff! We fired her as soon as we figured it out. 'cause we're doing everything we can to run a first-class operation here!") ...

Would an individual Liability Insurance help that RN to keep the job?

Thank you.

[lamazeteacher]

I looked up all the resources for MALPRACTISE insurance that sirI provided. Only NSO gave coverage information, which excluded employment reinstatement. An expert in fair employment practises would have to take over, if you were found innocent of charges (hopefully represented by your own attorney, paid at ? % of the lawyers' charges, by the insurance company.

You could go to the EEOC to try to get your job back, if you thought prejudice against your race, age, religion, political beliefs, etc. occurred, and there's proof of that (witnesses who will testify that they/you heard a supervisor/administrator make a cutting remark about your or anyone's race, age, religion, political beliefs, etc. If it's in writing (by the prejudiced person in their handwriting), even better. Sometimes computers of persons accused of something can be confiscated, but that is very difficult to get because:

A. you'd need a warrant from a Judge

B. someone could have hacked into it, removed the remark, or even placed it

If your state has "at will" hiring and firing policies, that will obviate any attempt to get your job back. The question I have, is why would you work there again?

Obviously they would want to fire you again, and be watching every move you made, or have someone possibly lie about you, for his/her own advancement.

One of the hardest things with which I had to deal, when I lost jobs (due to age discrimination) was the loss of coworkers who had become friends. They were afraid to stay in contact with me, and I didn't want them to lose their jobs through association with me....... Of course other things that made it so hard, was the humiliation, shock, and realization that this could even happen!

Leaving those short lived positions off my resume frightened me, as omissions, if discovered, can bite you back. Also, once you're oriented to a position, it's so much easier to do your job, than having to start over in a new one.

I made the above points in case anyone has the belief that someone gets over this kind of experience. For the past 14 years my age has been daunting (once it was discovered through filling in and submitting applications for health insurance benefits, which require your full birth date, and are required, even if you don't want their health insurance!).

So, I get malpractise insurance, even though I'm officially retired (but still wanting to work - I have denial issues). Good samaritan laws have changed in some states, leaving a nurse who stops to assist someone who has fallen, vulnerable to lawsuits and/or loss of license if there was neglect/inadequacy

to perform properly. Speaking of changes, I read in yesterday's NY Times, that the Supreme Court, with its "conservative" majority, just made it more difficult to prosecute an employer for age discrimination by removing one of the requirements. While I wish the decision hadn't been made, I do agree that no one should be liable for proving what they didn't do (prove the termination wasn't because of discrimination against the age of the employee).

So, new grads and others, be aware that you need your own insurance in case you're sued; and that your employer's representation covered by their insurance, won't necessarily protect you, if its in the best interest of the employer, to separate from you, by legal strategy, to win their case. Life can be unfair. Know, too, that it's your rapport with patients and their families that can save you, sometimes. Let no unguarded remark(s) to them, render you exposed to their ire.

We're in our profession to provide comfort and support, and to assist in getting patients to ambulate, cough, etc. or other painful things, when they don't want you to do the latter. Renouncing them for what you think (negatively) of them for their resistance to do things, usually won't get them to do it without ill will. Praise and pillows helps get them to deep breathe and cough, rather than threats of possible pneumonia. Doing comfort measures shows that you're on their side(s).

[JerzeeMike]

I am a new graduate and I just started my first position as an RN. Heck yes, I bought my own malpractice the moment HR called me and told me I had the job. It really is extremely little to pay for the peace of mind to protect my license that I worked so hard to get.

[elkpark]

Titanic777 said:

Would an individual liability insurance help that RN to keep the job?

Thank you.

No -- but it would protect her/him from having to pay for legal representation in court and/or before the BON out of her/his own pocket. The first hour with an attorney would, in most cases, cost more than the typical annual premium for nursing Liability Insurance.

[lamazeteacher]

elkpark said:

No -- but it would protect her/him from having to pay for legal representation in court and/or before the BON out of her/his own pocket. The first hour with an attorney would, in most cases, cost more than the typical annual premium for nursing liability insurance.

Actually a lot of attorneys don't charge for the first consultation, while you're interviewing several to see who you want to represent you.

[lamazeteacher]

JerzeeMike said:

I am a new graduate and I just started my first position as an RN. Heck yes, I bought my own malpractice the moment HR called me and told me I had the job. It really is extremely little to pay for the peace of mind to protect my license that I worked so hard to get.

Congratulations on graduating, and getting a job!

Insurance has always been representative of security. Now the health insurance industry's greed demonstrates that it is not always a means of maintaining peace of mind, when crooks become involved. That is always evident when prices/premiums rise dramatically and unrealistically. Watch the money!! (My graduation gift to you.)

[elkpark]

lamazeteacher said:

Actually a lot of attorneys don't charge for the first consultation, while you're interviewing several to see who you want to represent you.

Well, yes, but that hour wouldn't actually be working on your case, as you note. The first hour of your selected attorney working on your case would cost, in most cases, more than the actual annual premium for the coverage (a lot more, in most cases) -- and so would each additional hour until the case was resolved. ?

[lamazeteacher]

elkpark said:

Well, yes, but that hour wouldn't actually be working on your case, as you note. The first hour of your selected attorney working on your case would cost, in most cases, more than the actual annual premium for the coverage (a lot more, in most cases) -- and so would each additional hour until the case was resolved. ?

Unless the NLRB (National Labor Relations Board) was talked into paying for it......

[MaritesaRN]

lamazeteacher said:

Congratulations on graduating, and getting a job!

Insurance has always been representative of security. Now the health insurance industry's greed demonstrates that it is not always a means of maintaining peace of mind, when crooks become involved. That is always evident when prices/premiums rise dramatically and unrealistically. Watch the money!! (My graduation gift to you.)

Always carry an insurance if you are working in a clinical environment. Office work vs. floor nurse----a must . This is where it is so high in lawsuits. The reason why the doctors spend a lot of money on this because of the volatility of this nature.....even more if in California...it is a lawsuit business out here. Hope they put a ceiling on that malpractice lawsuits, to discourage ridiculous and irrelevant law suits from some predators out there....

[Kim O'Therapy, BSN, RN]

sirI said:

Excellent, Sue. Wise decision.

I am a brand new RN starting my first job. I've been looking for Liability Insurance although many do not think its needed. I was involved in a lawsuit over property once and never want to have to go through the legal system not being represented and covered financially. I just wish I could find lower rates in my area. The search continues........

[Kim O'Therapy, BSN, RN]

VACRNA said:

Not sure if this has been covered but it you stay within your Standard of Practice you are OK without an individual policy. Another reason is usually you have much deeper pockets standing in front of you. A malpractice lawyer is more apt to sue the doctor or medical institution where you practice

I do not know if your information is correct or not; however, I found out through my own personal experience (civil matter, not medical) that just because you are right and did everything correctly, does NOT mean you won't be sued. You will still need legal representation and that is expensive without insurance. JMHO.