Nursing Malpractice Insurance Facts
Nurses are integral to the delivery of quality health care services and a career path in nursing is a reputable one. However, if adequate precautions are not taken, a promising career path can be marred or terminated by a single malpractice lawsuit. Gone are the days when doctors are the only people that bother about malpractice insurance; today, every nurse needs a nursing malpractice insurance policy.
The Need for Nursing Malpractice Insurance
Lawsuits are commonplace enough to warrant the purchase of a policy. Mistakes are bound to happen, and even if there’s no error on the nurse’s part, some patients will file frivolous suits, sometimes out of grief or just to hold someone responsible for a medical mishap. Regardless of the situation, the nurse has to spend money on attorney fees, court costs, settlement costs, and several other costs related to a malpractice suit. With all these points in mind, it’s very important for nurses to have a certain level of malpractice insurance.
Professional Liability Insurance for Nurses
Malpractice insurance (also known as professional liability insurance) provides liability coverage for nurses within a particular period of time. In essence, these policies are structured to cover only the claims made during the period the policy is in effect. So, claims made outside this period aren’t covered if the policy isn’t renewed. However, nursing malpractice insurance policies typically have retroactive dates, and the nurse is covered for claims made for incidents before this date during the policy period.
Limits of Protection
A malpractice insurance policy for nurses usually provides coverage for malpractice cases up to about $1 million or more. Of course, the limits vary depending on the package and the determination to go forward is done only after considering factors particular to the nurse and with the advice of a specialist. However, some of the factors that affect the contents and premiums of a policy include specialty, geographical location and its laws, level of coverage desired, and the type of plan (whether individual or a group plan).
Purchasing a Nursing Malpractice Insurance Policy
Before buying any policy, an understanding of the contents, coverage, and commitments required is essential. Additionally, you need to know there’s really no cut and dried policy since different factors specific to the person purchasing the policy such as the location of practice and type of nursing determine each individual’s package. For instance, specialist nursing anesthetists usually don’t require as much coverage as some other nurses because the responsibility lies more with the physician.
Apart from practicing or registered nurses, nursing students are also usually required to have some form of malpractice insurance, especially since they come in contact with patients and can be held liable for malpractice cases associated with patient care. A lot of times, nurses and even doctors, end up not using malpractice insurance policies they purchased, but in light of the consequences of a malpractice suit, every nurse needs to purchase one.
Nursing Liability Insurance Explained
Anyone who works outside of their home is at risk for being sued over faulty behavior. This is especially true for those who are employed in the health field. Health professionals are considered to be highly skilled, intelligent and possess specialized knowledge which generally requires four or more years of university and field work. However, it is the nurses who are especially vulnerable to malpractice suits simply because they interact more much more closely with those who are ill than doctors. This is why it is very important for nurses to understand nursing liability insurance and how it can protect them.
Allegations
Working in the medical field as a doctor, nurse or other health practitioner does not allow for mistakes which may impede the recovery of a sick individual or cause them irreparable harm. Allegations made by patients or family members of patients who think that a nurse has committed a serious error occur daily and in all different contexts. Claims for these malpractice suits are routinely filed for one million dollars or more, depending on the consequences of the allegation. A nurse can therefore not afford to be without some kind of nursing liability insurance.
Coverage
Generally, a nurse should have either a claims-made policy or an occurrence policy in their name. With an occurrence policy, a nurse who has been faulted with negligence remains covered even if this claim was made against them after a policy has expired. In other words, any claim made against a nurse accusing her of neglecting or harming a patient is automatically covered by a policy as long as the incident happened before cancellation of the policy. A claims-made policy, on the other hand, covers a malpractice claim only for that period which the insurance policy was valid.
Finances and Career Protection
Healthcare professionals are constantly being sued for either genuine or unfounded reasons that are correlated with unfortunate incidents regarding patient care. Sometimes these allegations are not pursued by the plaintiff since they cannot be proven. However, a lawsuit which is filed against a professional individual can be embarrassing and extremely stressful, not to mention it could be detrimental financially and career-wise. Nursing liability insurance can prevent this potentially disastrous event from inflicting permanent damage on someone’s nursing career.
Employer Policies
A doctor or medical facility may offer a nurse their own type of coverage, but this coverage may only be a partial policy. Employers carry specific insurance policies which basically protect their interests first and take care of an employee’s interests last. Nurses whose employers inform them they do not need their own private policy probably want their own lawyers to represent them in court if something does happen which necessitates a lawsuit. Nurses who carry their own nursing malpractice insurance will guarantee themselves the benefit of a personal attorney who has their best interests in hand.
Limits
Most nursing malpractice insurance will contain liability limits. If a nurse remains covered only by their employer’s liability insurance, other individuals working for the same employer who happen to be named in the lawsuit will share these limits because they will be covered by the same partial policy. This means that any costs exceeding the limits of the employer’s insurance policy may be charged to the defendants. However, with private nursing liability insurance, a nurse will be totally covered and not be forced to suffer any financial losses.
Nursing Liability Insurance Regulations
The Nurse Practice Act, regulated by each state, outlines nursing rules and standards to which nurses are held accountable. It is basically a certain state’s list of laws that administrate the practice of nursing. Any violation of these laws is considered to be an act of negligence on the part of the nurse and is party to a malpractice lawsuit filed by an individual who considers a nurse to be at fault in the harm or even death of a patient. When a nurse purchases a nursing malpractice insurance policy, they are giving themselves much-needed protection against such a thing happening to them.
Negligence
There are four conditions which must be affected in order for a nurse to be declared guilty when named in a malpractice suit:
• The nurse owes the said patient a duty
• The nurse has failed to perform that duty or standard of care
• Damage or harm has resulted which is a consequence of a duty
• The breached duty is the immediate cause of the damage or harm
If these can be proved in a court, then negligence is deemed to have occurred and the nurse will be forced to monetarily compensate the plaintiff or the plaintiff’s family. If the nurse did not own nursing liability insurance at the time of the incident, she will have to make the payment herself, regardless of the amount.
Risk Management Tool
Nursing liability insurance is one of the many risk management mechanisms that a nurse must implement when working in her field. Besides constantly self-monitoring and being utterly thorough in his or her judgment regarding obligations to the patient, a nurse must remain fully aware of any changes in insurance regulations, such as the issue of liability. Since being a qualified nurse now means obtaining a higher education degree, nurses are not held unaccountable if a doctor gives them an order which results in patient injury. The price paid for expanding the medical ingenuity of a nurse is the necessity of liability insurance.
Factors
How much a nurse is required to carry in nursing liability insurance depends on state, clinic and hospital regulations, along with certain nursing organization requirements of which a nurse may be a member. In addition, this premium will also correlate with the amount of nursing duties performed and the degree of responsibility associated with these duties. For example, a licensed practical nurse may not need to carry as much insurance as a registered nurse will need to carry, since a registered nurse performs higher-level medical operations and is more directly accountable for a patient’s welfare.
Other Types of Insurance
Nurses can also purchase a non-nursing kind of insurance which covers those who train or teach others to be nurses. This nursing liability insurance will guard against lawsuits arising from situations unrelated to directly taking care of patients. Also, nursing students who are still attending a training program may be able to obtain liability insurance from the school or vocational center they are attending for a reduced cost. Nurses may also have the option to purchase insurance from the same company which provides them with house or life insurance, if the agency happens to carry it.
Understanding your Nursing Malpractice Insurance Policy
Due to the exorbitantly high amounts of compensation requested by medical malpractice lawsuits, procuring nursing liability insurance is no longer an option but a necessity for a nurse or any other healthcare professional. Depending on an employer’s insurance, covering all expenses in the event of a lawsuit is probably not feasible to the medical professional. As a result, coverage with a policy through NSO or any other qualified nurse’s insurance agency should be a priority when embarking on a nursing career. On this note, understanding your nursing liability insurance policy should be the next step.
24/7 Coverage
A nursing liability policy will cover a nurse for occurrences which happen during working hours as well as non-working hours. Nurses can be called upon to perform emergency services when not actually on the clock and even times such as these can precipitate an allegation of malpractice. In addition, most policies will also contain a provision which maintains its coverage effectiveness even during times when a nurse may be switching jobs or becomes unemployed. In this way, she remains protected and insured at all times of her career. Retired nurses can also take advantage of this aspect of liability insurance by simply keeping their license active with the state in which they practice.
Patient Compensation Fund
Some states provide a fund which has been established by law that compensates patients who have been injured as a result of medical treatment administered by either a nurse or doctor. Depending on the state’s view of patient compensation, these benefits can be given on the grounds of a no-fault or fault decision by the judge. This fund is meant to supplement a nursing insurance liability payment in a malpractice suit or it is considered to be the primary form of compensation to the defendant. In other words, a nurse involved in a negligence lawsuit may be assisted if her insurance cannot pay out the full amount awarded to the plaintiff.
Prior acts
In nursing liability insurance terminology, “prior acts” refers to incidents that may have already happened prior to the nurse purchasing her insurance policy. Most insurance agencies require that someone who has just obtained insurance also buy supplemental coverage, which will protect everyone involved against claims that may be filed due to an act which occurred prior to the insurance becoming valid. Prior-acts coverage is often added to a claims-made insurance policy, and is considered an option to an extended reporting endorsement, or “tail coverage”. This can be purchased from previous carrier when a medical professional decides to change insurance companies.
Limits of Liability
“Limits of liability” is the maximum amount a nursing liability insurance policy will pay out in the event of the nurse losing a malpractice suit. Medical professional liability insurance will generally designate two different maximums–one for a per-occurrence limit and one for an aggregate limit. The per-occurrence limit, which depends on the amount of the premium a nurse pays, is usually around $1 million dollars, while the aggregate, or multiple limit on more than one claim, can be around $3 million. This means that if a nurse is sued more than once for malpractice while covered by the same insurance company, the company will only pay up to $3 million dollars.
Who Needs Nursing Liability Insurance?
Anyone who is in the nursing profession and cares for the health of patients in a medical facility should have nursing malpractice insurance. An individual who possesses a license which states that he or she is expected to competently and conscientiously perform duties which contribute to the well-being of a patient means they are totally responsible for maintaining the health of an individual who is ill. Whether you are a vocational nurse, a licensed practical nurse, a nurse practitioner or a register nurse, nursing liability insurance is a must for those involved in the responsibility of someone’s health.
More Likely to be Sued?
If someone goes by the title of registered nurse or nurse practitioner, this indicates that they have knowledge and abilities which are somewhat comparable to those of a physician. It has been argued that nurses with these titles should not buy nursing liability insurance because certain people will view them as having a “deep pocket” which may make them more likely to be sued by those claiming malpractice. However, this should not deter an R.N. or nurse practitioner from purchasing insurance. A nurse’s insurance information is not usually known prior to the claim and the plaintiff will simply sue anyone he thinks may have caused his injury.
LPN’s and LVN’s
Licensed practical nurses and licensed vocational nurses are individuals who work under the supervision of a doctor, nurse practitioner or registered nurse. They generally perform duties such as taking patient’s vitals, dress wounds, give patient’s baths and otherwise keep patients as comfortable as possible while they are recuperating from an illness. While these nurses may not have the medical knowledge R.N’s have, they can still be accused of negligence and sued for malpractice. It is important for them to also carry nursing liability insurance.
Forensic Nursing
Forensic nursing is a field of nursing which deals with victims of crime, such as domestic violence, rape and child abuse victims. They also examine individuals who have been killed as a result of being stabbed or shot. Many forensic nurses are also employed as investigators in hospital emergency rooms, where they gather evidence such as bullets, hairs or other items left on or in the body. Even though these nurses do not seem to perform the same tasks as an R.N. or L.P.N., they still are expected to professionally care for and handle individuals in a responsible manner. Therefore, forensic nurses should also be protected with nursing liability insurance.
Pediatric, Intensive Care and Emergency Room Nursing
Of all the fields of nursing, these may be the most demanding and white-knuckled branches of the nursing profession. This is specialty nursing where decisions must be made quickly and certain actions could mean the difference between life and death. In this sort of fast-paced, highly emotional environment, unintentional errors in judgment could very easily be made by even the most seasoned nurses. Having nursing liability insurance would then be extremely imperative in this context of nursing. Anyone who works as one of these types of nurses should definitely be covered by a comprehensive liability insurance.
Why is Nursing Liability Insurance Important?
Nursing can be one of the most rewarding and exciting careers in the medical profession. Unfortunately, it can also be one of the most vulnerable to malpractice lawsuits simply because a nurse is in such close contact with the patient, providing most of the care for someone who is hospitalized. Even a small mistake can lead to a disgruntled patient or family member filing a massive lawsuit which can ruin a nurse both career-wise and financially. By having nursing malpractice insurance coverage, a nurse does not have to worry about the financial ramifications of a lawsuit.
Employer’s Insurance
A recent survey by the American Nurses Association revealed that just a little over 45% of nurses stated that they did not carry nursing liability insurance. The reason behind this was the fact that they knew they were covered by employer insurance. However, most nurses do not understand that this type of insurance will not cover even half of their expenses in the event of a malpractice suit. In addition, employer liability insurance companies utilize lawyers who only care about the medical facility or doctor they represent, not the nurse who is on trial for something she or he may or may not have done.
No One is Perfect
Nursing is one of the most difficult, stressful yet rewarding careers someone can pursue. A nurse generally works long hours in overcrowded hospitals or underfunded medical facilities, dealing with shortages of staff and a nightmare of paperwork to be filled out every day. Even the most dedicated nurse is bound to make more than one mistake during his or her career and occasionally these mistakes may inadvertently lead to injuring a patient, whether temporarily or permanently. This is when having nursing liability insurance can be a lifesaver for the nurse and her career.
Inappropriate Behavior
Unfortunately, there are times when a nurse may be accused of inappropriate behavior while working, such as alcohol or drug abuse or an incident of patient neglect which does not necessitate a malpractice lawsuit. Even though a nurse never anticipates this sort of accusation, events could spiral out of control which leads to disciplinary measures being enacted and brought before the Certified Board of Nursing. A nurse in the process of being disciplined will need to pay for the services of an attorney and other legal expenditures which can only be provided by private nursing liability insurance coverage.
Neighborly Advice
Being a nurse means everyone who knows you are a nurse is going to ask for medical advice from everything to a hangnail to a concussion. If this advice or consequent actions do not go as planned, employer liability insurance will not protect the nurse when being sued by someone who has been injured by the advice or one-time medical service of a nurse. Nursing liability insurance will guard against out-of-pocket expenses in the event a nurse’s friendly recommendations are misconstrued and thought to be grounds for a lawsuit by an individual angered by an unforeseen medical consequence.