Should Nurses Get Malpractice Insurance to Mitigate Financial Risks

Nurses are human beings with emotions, and making mistakes can happen to anyone. A single mistake can lead to a malpractice lawsuit, which can be financially devastating.

The cost of a malpractice lawsuit can be staggering, with some cases costing upwards of $1 million or more. According to one study, the average cost of a malpractice lawsuit is around $250,000.

Having malpractice insurance can help mitigate these financial risks. In fact, a survey found that 75% of nurses believe that malpractice insurance is essential for protecting their financial well-being.

Expand your knowledge: Travel Nurse Private Health Insurance

A lawsuit can be filed against a nurse even if they haven't done anything wrong, as a patient can simply claim they made a mistake. This can be a costly and time-consuming process, with the nurse responsible for defending themselves.

Malpractice insurance can provide protection and financial support in the event of a lawsuit, but it's essential to understand the fine print of various types of policies. Even if a hospital or health system assures nurses that they are covered under the employer's policy, it's crucial to review the policy to understand the terms and conditions.

For your interest: Does Car Insurance Cover Lawsuit

A nurse can be held liable for a percentage of the claim, and all adjudicated wrongdoers can be held accountable for the whole amount of the judgment. This emphasizes the importance of having personal malpractice insurance to protect one's career and reputation.

Here are the four elements that constitute medical malpractice, as defined by the courts:

A civil case is a type of lawsuit that focuses on resolving disputes between individuals or organizations. Malpractice is a civil tort, not a criminal act, which means you don't go to prison for malpractice, but rather become liable for damages.

In a civil case, damages might include costs like past medical care, future medical care, and future earnings. It's also worth noting that damages can be influenced by factors like age and income level, with it being less costly to hurt an older person than a younger person, and a lower-earning person than a higher-earning person.

You can be held liable for damages even if you're not found to be responsible, which is why it's essential to understand the importance of liability insurance. Liability insurance can help protect you from claims of errors made by you while performing your job as a nurse.

Check this out: Civil Auto Liability

To understand what constitutes liability, it's essential to know the four elements that must be met for any given act to be considered malpractice. These elements are duty, breach, causation, and damages.

A duty to treat is usually the easiest for an attorney to prove, and it's met if someone came to your clinic or hospital to be seen by you and you saw them or should have seen them.

The second element, a breach of the standard of care, is where expert witnesses come in with their opinions, trying to convince the judge or jury of exactly what the standard of care would be.

Causation is the third element, and it requires that the breach actually caused subsequent harm. You can make mistakes, but if they never hurt anyone, it's not malpractice.

Damages are the fourth and final element, and if there are no financial damages, there is no malpractice. It's a civil tort, and it's about money.

Here are the four elements of malpractice in a concise list:

When a hospital or health system assures nurses that they are covered under the employer's policy, it's essential to understand the fine print of various types of malpractice insurance policies.

Even if you're covered by your employer's policy, you may still be liable for a percentage of the claim, and a jury can collect 100% from any one of the defendants, as seen in Example 6.

You should review your employer's policy to ensure it's not leaving you high and dry, as mentioned in Example 2. Check if it includes gaps or exclusions you're not aware of.

A policy's coverage may not be as comprehensive as you think, such as the business/general liability coverage with a $1 million occurrence/$1 million aggregate limit, as stated in Example 3.

It's crucial to understand the type of insurance coverage provided by your employer, including whether it covers you while employed and after leaving your employment, as mentioned in Example 10.

Here are some key points to consider when reviewing your employer's policy:

There are three types of malpractice insurance: occurrence, claims-made, and tail insurance.

Occurrence policies provide coverage for life, but only if the coverage was active and payments were made on the day the malpractice was committed.

Claims-made policies cover any claim made during the policy period in which a policy was purchased, but may not provide protection for incidents that occurred before the policy was active.

Tail coverage is an addition to a claims-made policy and extends coverage for incidents that happened during the policy period, but a claim was not made until after the policy expired or was cancelled.

This extended reporting period can be helpful, especially since the statute of limitations for lawsuits can be up to 10 years after the malpractice has been committed.

For your interest: Can I Put a Life Insurance Policy on My Parents

There are two main types of policies to consider: claims-made and occurrence-type.

A claims-made policy covers incidents that occur during the policy period and only if the claim is reported during that period. This means if you had a claims-made policy in 2019 and a claim was filed against you in the same year, you're likely covered.

For your interest: Business Owner's Policy

An occurrence-type policy, on the other hand, covers incidents occurring during the policy period, regardless of when the claim is reported.

Here's a comparison of the two:

With a claims-made policy, if a claim is filed in a later year, you wouldn't be covered. This is a key distinction to keep in mind when choosing a policy.

Business/General Liability Coverage is a type of insurance that protects you if someone files a claim against you alleging that your premises or operations caused them bodily injury or harm.

The policy applies if someone files a claim against you, and the amount covered is $1 million occurrence/$1 million aggregate.

This type of coverage is essential for nurses, as it can help protect you from financial ruin if you're sued.

Here are some key facts about Business/General Liability Coverage:

It's worth noting that you may not have done anything wrong and still find yourself named in a suit, so having this type of coverage can provide peace of mind.

Having malpractice insurance as a nurse can give you a sense of security, but what about protection and defense? The good news is that many policies offer additional defense services beyond just insurance coverage. For example, if a claim is filed against you, a lawyer from the insurance company's network will be retained to defend you, at no extra cost to you. This means that their services don't cut into the settlement fees you may need to pay after a ruling.

In fact, some policies even offer a $25,000 limit per policy period for licensing board protection defense, in case the professional licensing authority is investigating matters related to your professional conduct. This can be a huge relief, especially if you're facing a lengthy investigation or disciplinary action.

Here are some key defense services that may be included in your malpractice insurance policy:

Remember, the goal of malpractice insurance is to protect your personal assets and provide you with the necessary defense services to resolve claims and investigations. By choosing a policy that offers these additional defense services, you can have peace of mind and focus on your nursing practice.

Good Samaritan Coverage is a vital aspect of protection and defense. If you provide professional care to someone who is not your patient in a first aid or emergency situation, your policy would still apply.

This means that even if you help someone outside of your regular practice, you're still covered.

Having a strong defense in place can give you peace of mind, especially when dealing with professional licensing authorities. If the authority is investigating matters related to your professional conduct, our policy provides you with legal defense.

We've got your back with a $25,000 limit per policy period, so you can focus on resolving the issue without financial stress.

Protecting personal assets from malpractice lawsuits is a top concern for many doctors. You can be 99.99% sure of not losing personal assets, as it's extremely rare.

The first line of defense is not committing malpractice, which should be the top priority for any doctor. Liability insurance is the next main line of defense, and it's essential to have adequate coverage.

Discover more: Does Not Wearing a Seatbelt Affect Insurance Claim

Typical limits of liability range from $500,000 per claim/$1 million aggregate to $2 million per claim/$6 million aggregate. In the rare situation that you get beyond that, state exemption laws come into play, which typically include retirement accounts and a significant amount of home equity.

Here are the key lines of defense:

It's worth noting that most "exotic" asset protection schemes don't work, and the best plans are straightforward and inexpensive, often done for non-asset protection reasons like tax reduction or estate planning.

Having a defense counsel by your side can be a huge relief if a claim is filed against you. We'll retain a lawyer from our network of defense attorneys specializing in medical malpractice to help defend you.

Our defense counsel services don't cut into your insurance settlement fees, as they're outside the limits of your policy. This means you can focus on your case without worrying about the financial impact.

Readers also liked: In House Counsel Malpractice Insurance

If a claim is filed against you, we'll also pay for related defense costs, including lawyer fees, court fees, and expert witness costs. These costs can add up quickly, but with our support, you won't have to bear the financial burden alone.

Having a defense counsel can make a big difference in the outcome of a claim. We're committed to helping you navigate the process and get the support you need.