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In our Ask a Nurse series, experienced nurses provide an insider look at the nursing profession by answering your questions about nursing careers, degrees, and resources.
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What Is Personal Liability Insurance?
Personal liability insurance can help you financially if you are sued by a patient or their family. It is a type of insurance that protects you from claims brought against you and the service you provide as a nurse.
According to the Nurses Service Organization (NSO), the average cost of a nurse’s malpractice claim is $201,916. Some states require nurses to carry personal liability insurance, but for the most part, it is a personal decision.
Personal liability insurance can also be referred to as:
- Medical malpractice insurance
- Nursing malpractice insurance
- Errors and omissions insurance
Why Do Nurses Get Sued?
Nurses get sued for many reasons. Some states allow patients to sue nurses and/or doctors for up to 10 years. One reason nurses are sued is because of negligence that caused harm to a patient or death. Another reason is because of allegations related to the treatment and care provided by the nurse or healthcare team.
Nurses also get sued for:
- Medication errors
- Unprofessional conduct
- Failure to take action
- Injury
What Are Different Types of Liability Insurances?
You can choose between two types of liability coverage to add to your personal liability insurance. It is up to you to do your research and decide which coverage is best for you. The two types of liability coverage are claims made and occurence based.
Claims-made Insurance Coverage
With claims-made insurance coverage, your insurer will cover claims filed during your policy period with added features such as a retroactive date or an extended-reporting period.
A retroactive date is when a claim is made during your policy period but the incident happened before your policy period. The retroactive feature allows the insurance company to help cover the claim.
An extended-reporting period covers claims during a certain period after your policy coverage has ended. It typically lasts 30-90 days after the policy has ended.
Occurrence-based Insurance Coverage
Occurrence-based insurance coverage is an additional policy that covers you during your policy period regardless of when you file a claim. This type of coverage is pricey because of how long the policy is active.
Additional Insurances
There are different types of liability coverage, too. You may choose to have personal liability insurance and add additional insurances. Others include:
- Workers’ Compensation Insurance: This covers work-related injuries to help pay for healthcare bills or additional treatment like physical therapy.
- Commercial Property Insurance: If you own a business as a nurse, commercial property insurance can help protect your home or office. It can also protect medical equipment such as blood pressure machines and monitors.
How to Pick the Right Coverage for You
To pick the right insurance coverage, do your research. You don’t want to pay for coverage that may not be right for you. Ask other nurses which policies they hold and how happy they are with it. To get a policy, most insurance companies will give you a quote, then allow you to pick a policy online or over the phone.
According to NSO, the majority of claims resolve for less than $100,000. But 3.1% of claims are paid the total policy limit of $1 million. How much you pay monthly or annually for personal liability insurance varies by insurance company and state.
No one wants to get sued, but it is better to be prepared if it happens. Being sued doesn’t only happen to new nurses either. According to NSO, experienced nurses are more likely to be sued than new nurses. I see personal liability insurance as getting it and then forgetting about it. Just remember to renew when the policy has expired.
In our Ask a Nurse series, experienced nurses provide an insider look at the nursing profession by answering your questions about nursing careers, degrees, and resources.
