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.

[PediMommy]

Thanks to everyone for reassuring me to keep my insurance through NSO. I have had it for many years and was thinking about letting it lapse this year do to an inservice we had a few months ago. Long story short the lawyer (a friend of one of the dr's I work for!!) Said if as a nurse you have Liability Insurance you are more likely to be named in a suit, you fall under your employer etc. So I received the NSO bill in the mail last week ($233 in TX).

I was torn in what I should do. I discussed it with my husband and he initially said just pay it then later he said I wish we could really see if you need it. So here I am coming to the ones who really know and you all have given me the answer!!!!

Thanks a bunch!!!

[AtomicWoman]

I have student coverage through NSO. For $30 per year, I'd be nuts NOT to have it! After hearing how cheap it was quite a few of my fellow students purchased it as well. I think they owe me a commission. LOL

One of our instructors is also a practicing attorney. Among other things, she represents nurses in malpractice suits. She told us (in a lecture on nursing legal issues) that if the hospital's attorneys think it will benefit the hospital, they will "throw the nurse under the bus". The instructor strongly recommended we have our own malpractice insurance.

[sirI, MSN, APRN, NP]

Thanks, AtomicWoman.

Your Instructor was very wise.

[kittykatty]

"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"

Hate to tell you this but the Supreme Court does not have a Conservative Majority---I'm afraid you'll have to blame the Libs for this one.

[hospicerocks]

First off, many lawyers will tell you NO. The insurance just makes you another pocket for the plaintiff to dig into.

[stacey685]

Thank you, the employer definitely covers their butt first. I never read the information quite this way. Thank you

[staceyray05]

Im an LPN for 5 years and have had it since day one. If you get it you wont need it!

[Divinelyloved]

God bless you sirI for starting this tread, have read through it and am logging onto NSO to get my quote, they seem to be the only one with a lot of info, am a new grad so I think I will get a reasonable price....much tks

[Divinelyloved]

hi sirI, does the malpractise insurance transfer to a different state or are you only covered in a particular state? Am trying to fill mine now...

[sirI, MSN, APRN, NP]

Divinelyloved said:

Hi sirI, does the malpractise insurance transfer to a different state or are you only covered in a particular state? Am trying to fill mine now...

Should you move, you will have to contact NSO and advise them on this. That way, they can adjust the premiums.

[diane227, LPN, RN]

This is an interesting subject. I did a case as a legal nurse consultant where the hospital was sued for something (I can't remember what) but their limits of liability were $250,000 per event (this was a county hospital and their limits were established by law). However, as they reviewed the case they came to learn that one of the nurses in the case, who had given the patient one does of medication, who's name appeared on the chart once, who had nothing to do with the allegations being made, was found to have a malpractice insurance policy for a million dollars. They immediately jumped on her like vultures. They did everything they could to try to turn the case around to make it appear that the "error" was her fault. It ended up costing her a lot of time and money, plus harm to her reputation.

The only time I have carried malpractice insurance is when I have acted as an independent agent such as working as an agency nurse or as a legal nurse consultant. Otherwise, I do not carry insurance.

[kriziabrown]

That is a pretty interesting topic to think about. When I think of malpractice I automatically think of a doctor. I didn't know nurses need to have malpratice insurance. Do the hospitals cover that or how does that work??? I guess i would not get it either hearing that story makes me think about it. But if a nurse makes the error would you get sued as a person or would they just sue the hospital directly??? This is a bit of a confusing topic to me that I would like to know more about.