As a nurse, you play a vital role in healthcare and ensuring the well-being of patients. However, like any other medical professional, nurses can also face malpractice lawsuits. Many nurses have such concerns. For them, medical malpractice insurance is a godsend, as it protects both their profession and their assets. In this blog, we will cover why medical malpractice insurance for nurses is important, what it encompasses, the most common claims, as well as the benefits of individual coverage.
What is Medical Malpractice Insurance for Nurses?
Medical malpractice insurance for nurses is a type of professional liability insurance that protects nurses in the event they are accused of making an error or failing to perform their duties correctly, leading to patient harm. Coverage typically includes legal defense costs, settlement fees, and any damages awarded in the event of a lawsuit. This insurance helps protect nurses from financial hardship if they face a malpractice claim.
For nurse practitioners, this coverage is necessary for them as their license to diagnose and treat patients can undoubtedly put them in a higher risk zone. When a nurse practitioner holds malpractice insurance, it ensures the coverage is appropriate for their specific roles and responsibilities.
The American Association of Nurse Practitioners (AANP) highlights the importance of malpractice insurance: ‘Malpractice insurance (i.e., professional liability insurance) protects nurse practitioners (NPs) and other clinicians from costs associated with claims of negligence or incompetence, including costs related to liability and legal defense.’
Types of Malpractice Insurance for Nurses
There are two primary categories for nurses’ malpractice insurance; claims-made and occurrence based. A claims-made policy will cover the nurse only if the claim is made during the policy coverage period and not if the injury occurred in the past.
On the other hand, an occurrence-based policy provides coverage for all incidents that occur during the policy period, regardless of when the claim is filed. The choice of liability insurance policy depends on the type of practice and the nurse’s career.
However, some nurses buy a claims made policy in anticipation of changing their employers or retiring soon, while some buy occurrence based policies for long term use as they generalize in the future.
To learn more about the differences between these policies and which one might best suit your needs, check out this blog: Claims-Made vs. Occurrence Malpractice Insurance.
Why Should I Buy Nurse Liability Insurance?
The rise in the number of medical malpractice claims is one of the key reasons why it is important to buy nurse liability insurance. Even when a company offers a general liability insurance policy for its employees, individual nurses may still not be safe. Such insurance provided by employers has its limitations, and restrictions, and will not address specific claims against a nurse which may include claims made to the State Board of Nursing (SBON). Such claims can be made anonymously and filed by patients or their relatives, and sometimes even by coworkers.
Nurses who work as independent contractors, per diem nurses, or on an “as-needed” basis are particularly vulnerable, as they typically do not receive coverage through an employer. Without their own liability insurance, these nurses would have to pay for legal fees and damages out of pocket if a malpractice claim arises.
Moreover, purchasing Registered Nurse (RN) malpractice insurance protects your professional reputation and license. In case of malpractice or filing a complaint with the SBON, the coverage of your malpractice insurance will also come to protect your nursing license. You can easily protect yourself from lawsuits that may threaten your financial stability whether you are a staff nurse or working as an independent nurse contractor.
What Are Common Malpractice Claims Filed Against Nurses?
Nurses can face various types of malpractice claims, many of which stem from errors in judgment, communication, or failure to adhere to proper protocols. Some of the most common claims filed against nurses include:
Medication Errors: Providing the incorrect medication and/or dosage to patients can result in serious patient consequences, ranging from adverse reactions to life-threatening situations.
Failure to Monitor Patients: Nurses regularly check patients as part of their duties, including their vital signs and well-being. If there is a sudden change in a patient’s health and there is no healthcare personnel around to intervene, the nurses who were responsible for the patient are likely to be accused of negligence or will be questioned for their approach.
Patient Falls: Improper patient handling or assessment of the patient for risk of falls may end up causing injury to the patient and face lawsuits which most likely occur at times in hospitals or nursing homes where patients have poor mobility.
Failure to Communicate: To give the best care and meet specific requirements, patients must be adequately informed to other health practitioners. In shift changes, notes between nurses and physicians often lack comprehension which leads to the negligence of taking care of the patient or operating on them.
Wrongful Death: In extreme cases, nurses can be sued for malpractice if their actions or inactions are found to have contributed to a patient’s death, particularly in emergency situations or when critical care is required.
Based on the data provided by the Nurses Claim Report, Death remains the most common patient injury that results in a lawsuit. It accounts for 40.9% of all malpractice claims against nurses.
Improper Use of Equipment: Incorrectly using medical equipment or failing to properly maintain it can lead to patient injury or complications, resulting in malpractice claims.
Failure to Act or Respond When Required: Nurses are sometimes obliged to act without delay during an emergency or when a patient’s medical status deteriorates. So, not acting or not acting properly would put the nurse in a position to face a negligence or malpractice suit.
The average cost of a registered nurses’ malpractice claim is $210,513.
Understanding the risks nurses face can help in selecting the best malpractice insurance for nurses. By having coverage, you can ensure you are protected from the financial consequences of these common claims.
Is Employer-Provided Coverage Enough?
Many nurses assume that their employer’s liability insurance will fully protect them in case of a malpractice lawsuit. However, employer-provided coverage may not always be sufficient. This is especially true if the employer’s insurance only covers the hospital or clinic and not the individual nurse.
In some cases, employer policies may have limited coverage or exclude certain types of claims, leaving nurses exposed to financial risk. Additionally, employer coverage does not provide personal legal defense for the nurse, which means that if you are named in a lawsuit, you may have to pay for your own defense costs.
Having individual malpractice insurance ensures that you are personally covered, offering the protection you need in situations where employer coverage falls short.
Benefits of Having Individual Malpractice Insurance
While employer-provided coverage may be adequate in some cases, individual malpractice insurance offers several advantages:
- Personal Coverage: Individual insurance ensures that your personal assets are protected, regardless of your employer’s policy.
- Tailored Policies: You can choose a policy that suits your specific role and responsibilities. For nurse practitioners, for example, the best malpractice insurance for nurse practitioners will cover more extensive duties, such as diagnosing and prescribing medications.
- Legal Defense Coverage: A good malpractice insurance policy will provide legal defense costs, which can be astronomical in malpractice cases.
- Flexible Coverage: Many individual policies offer coverage for a variety of situations, from minor mistakes to serious incidents, ensuring that you are protected in any scenario.
Are There Additional Insurance Policies to Protect Nurses?
While medical malpractice insurance is essential, nurses may also consider other forms of coverage to provide a more comprehensive safety net. Some additional insurance policies that can protect nurses include:
- General Liability Insurance:
This insurance covers physical harm or property damage that third parties might sue for while the nurse is performing their duties. For example, if a nurse injures a family member of a patient or damages property, general liability insurance would cover these claims. This is especially beneficial for nurses providing healthcare services at home or working alone, as they may encounter these situations outside of a hospital setting.
- Disability Insurance:
Disability insurance is crucial in the event that you are unable to work due to illness or injury, whether it’s a short-term issue or a long-term disability. Nurses often work long hours in physically demanding environments, which can lead to musculoskeletal injuries and other health issues.In these cases, disability insurance can provide income replacement, helping nurses cover their living expenses while they recover. Without this coverage, nurses might face financial hardship if they are forced to take time off work due to a personal health crisis.
- Workers’ Compensation:
Workers’ compensation is a type of insurance that is required by the state, and it pays out to employees who have been injured or gotten sick due to work-related activities. For nurses, this would include situations whereby he/she injures herself while lifting patients or suffers a needle-stick accident or contracts an infectious disease while on the job, or other similar circumstances.Medical expenses, rehabilitation expenses, and sometimes a percentage of wages that the nurse has lost as a result of that injury are included under workers’ compensation. Since there are differences in provisions in different states, nurses need to familiarize themselves with the details of workers’ compensation applicable in their state.
- Commercial Property Insurance:
Commercial property insurance protects physical assets owned by a nurse or their practice. It covers losses or damages from theft, fires, or natural disasters, and can help with the cost of replacing damaged equipment or supplies. This insurance also helps cover expenses if professional services are interrupted due to unforeseen events, ensuring financial stability during such disruptions.A combination of these policies ensures greater protection for nurses in various situations.
Protecting Yourself as a Nurse
Medical malpractice insurance for nurses is a critical component of a nurse’s professional life. Whether you’re a nurse practitioner or a registered nurse, ensuring that you have the right coverage can protect you from the financial and emotional toll of a malpractice lawsuit. By understanding the common risks, the importance of personal coverage, and additional insurance policies that can enhance protection, nurses can focus on providing exceptional care to their patients, knowing they are covered.
To learn more about finding the best malpractice insurance for nurses and nurse practitioners, it’s advisable to consult with an insurance professional who can guide you in selecting the appropriate policy based on your needs and career path.
