? Get Malpractice: Importance of Professional Liability Insurance in Managing Risk

Many nurses believe that if they purchase professional liability insurance, they will increase their chances of being named in a malpractice suit. Many employers encourage this notion, as it is easier and more economical for an employer to manage a liability claim if the interests of individual employees are not being individually protected. The fact is, however, that most. lawsuits are filed before a plaintiff's attorney has any knowledge of whether a defendant has insurance or not. It is only during the discovery phase that this information is learned. And, in today's world, the plaintiff's attorney will name everyone who is remotely connected to a patient's care in order to have the largest sum of money available as possible to satisfy a damage award. If you have signed the chart, you will probably be named, even if the care provided is tangential to the events which actually caused the injury.

Other nurses believe that their employer's professional liability insurance provides all of the coverage needed. While this is certainly true in the majority of cases, there may be instances in which the interests of an individual may be in conflict with that of the employer. In fact, if the event leading to a malpractice claim was contrary to the policies and protocols established by the employer and the employer is sued, the employer can file a claim against the practitioner to recover awarded damages and attorney fees.

A third reason for considering the purchase of personal professional liability protection is for acts performed outside of the scope of employment. As an example, if a nurse accepts a moonlighting position, a full-time employer's insurance plan will not cover any adverse events. Nurses are commonly called upon by friends, neighbors, and relatives to assess a medical situation and to provide care or to suggest a course of action. If erroneous advice or care is given, the nurse can be sued for the resulting injury. Again, the employer's policy would not respond as the event did not occur in the course of employment activities; the nurse would be personally liable for all resulting expenses.

And what about Good Samaritan acts such as stopping to assist in an automobile accident or attending to a person who falls on the street? While most states have Good Samaritan statutes which prevent making a claim against an individual who assists another without being remunerated for care given in an emergency situation, individual events such as a claim for gross negligence could waive the protection afforded by such a statute. And, furthermore, these statutes, although providing some protection against loss, do not protect against being sued and incurring the cost of defense.

If, after understanding the limitations of employer supplied liability insurance, a nurse makes an informed decision to rely on this risk transfer vehicle, he/she should investigate the nature of the policy/plan affording the protection. It might also be advisable to request a copy of your employer's policy/plan and have it reviewed by an insurance professional.