Should I Carry Nursing Malpractice (Liability) Insurance?
Malpractice (liability) insurance provides essential legal and financial security. Many Nurses go "bare" and never really consider Liability insurance as important. Be sure you are well informed before you make any final decisions about your future.
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
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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.
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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).
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 ...
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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.
I just got my LPN license, and I've been shopping around online comparing different rates, coverages, etc. This country is so sue-happy, especially with health issues, that I feel that I need some sort of protection. And you (OP) have made excellent points concerning the policies offered at work vs. your own private portable ins. policy. Something I really had not considered before - yes even if you work for someone else, for example a hospital, yes their ins. covers you, but in the end it's *their* insurance and the first consideration of that, will always be them, not you individually. If their ins. provider decides it's in their (your workplace's) best interests to throw you under the bus to save themselves, you are toast. I say $150 to $200 a year is a small price to pay for your own portable insurance and legal representation. And this is something I will keep to myself, until the time comes when I may really need it. Until then nobody else needs to know about it but me and prospective clients, agencies etc. I've already contacted some of the companies/orgs listed for quotes. Thanks for your informative posting.
. . . I just don't like the culture of fear that develops around civil litigation. . . . even the NSO website only list cases where the nurses payed around 100K (i wonder why they couldn't find more expensive settlements (I suspect, not a lot exist or nso couldn't sell insurance that cheap and make a profit)).
I want to protect myself - doesn't mean I buy into a culture of fear. If you are a homeowner you buy homeowners insurance - you don't live in fear or someone suing you or your house being burglarized. You have health insurance - doesn't mean you are living in fear of your health deteriorating. You just want to be prepared. It's something you hope you never have to use. And the insurance companies through their accountants and actuaries are betting that you probably won't. That is why they are offering you insurance at the rates they do.
As far as individual ins. companies go, well, that's why I'm doing my homework and shopping around a bit first. Lowest rates don't always mean the best value for the dollar for any product, including insurance. Just my two cents ...
Glad to have read this article. I've been a nurse for two years and haven't carried insurance. But I'm about to purchase it. I asked around at work to other nurses if they had and none of them seemed to have an idea that we need it. One said only NP's need it and the other said the hospital in orientation told them they shouldn't purchase their own unless they are doing something outside of the hospital for their own coverage. I disagree. I can't imagine the hospital truly covering me, they would cover themselves first. I've seen how the hospital treats it's nurses and I just don't trust them enough.
So, I am looking into getting coverage. The options I am given by the NSO are 1,000,000/6,000,000; 1,000,000/3,000,000; and 500,000/2,500,00. I work in the ED and want to be covered, but is there such a thing as overkill?
I just started working at a school for kids with Autism. After starting, I found out that there are also classes for students who need "emotional support." In other words, these kids have spent time in the local psychiatric hospital and have mental health issues and behavioral issues. So I just applied for the insurance to cover my rear end. In that environment after seeing in a short time how these kids make up lies, I am NOT even chancing it.
So I am now insured (as of 5 min. ago). But upon my search for which company is best to use, I found a comment (on a completely different site) that suggested that getting malpractice insurance makes you more likely to be sued. I guess I am just ignorant on how that could be possible. My insurance policy isn't public knowledge, how on earth would any one find out and use that fact just to sue me? Is this just a baseless rumor or assumption that other nurses have?
Well, from my understanding if someone is suing the hospital. The attorney casts a very wide umbrella to try and find anyone at fault... So you could be apart of this lawsuit with or without insurance. Obviously, if you do have your own insurance and at fault they will get more of a payout from your personal insurance and the hospital.
Keep in mind though, whatever company you work for, their lawyers work for the company to protect them not really you. I have heard of stories where the company covered the nurse during the lawsuit but then fired that same nurse afterwards.
I would rather take the chance of getting pulled into a lawsuit knowing I have my own lawyer than just relying on the facility.
Also, if you no longer work at that facility, they have no obligation to support you during a later lawsuit. Words for thought.
AZ_LPN_8_26_13
462 Posts
I just got my LPN license, and I've been shopping around online comparing different rates, coverages, etc. This country is so sue-happy, especially with health issues, that I feel that I need some sort of protection. And you (OP) have made excellent points concerning the policies offered at work vs. your own private portable ins. policy. Something I really had not considered before - yes even if you work for someone else, for example a hospital, yes their ins. covers you, but in the end it's *their* insurance and the first consideration of that, will always be them, not you individually. If their ins. provider decides it's in their (your workplace's) best interests to throw you under the bus to save themselves, you are toast. I say $150 to $200 a year is a small price to pay for your own portable insurance and legal representation. And this is something I will keep to myself, until the time comes when I may really need it. Until then nobody else needs to know about it but me and prospective clients, agencies etc. I've already contacted some of the companies/orgs listed for quotes. Thanks for your informative posting.