Professional Liability Insurance for Nurses: Definition, Cost, Features & Providers

Professional liability insurance for nurses is coverage designed to protect those in the nursing profession against claims arising out of their duties. It covers accusations of errors and omissions in the course of a nurse’s work. Pricing options vary, but a typical professional liability insurance policy for nurses costs $80 to $1,000 per year.

For a review of your insurance as a nurse, contact CoverWallet. CoverWallet has many small business insurance companies to offer competitive pricing and coverage options for nurses’ professional liability insurance.

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How Professional Liability Insurance for Nurses Works

Professional liability insurance, also called errors and omissions, protects those who make a living by offering professional services or consulting. For nurses, professional liability covers accusations of negligence in their work by paying their legal defense costs in court and before professional boards.

Some of the situations professional liability covers for nurses include:

• Claim filed after you have terminated your employment: Having your own professional liability coverage means you’re covered for claims involving a job even after you end your employment.
• Acts outside of your employment: Some policies cover volunteering and consulting or educational services you provide.
• Licensing board hearings: You may need legal representation if your license is challenged before a state board.

Nursing professional liability insurance provides coverage for claims reported during a designated policy period. Policies typically provide up to $1 million in liability coverage for each claim with $6 million available for all claims occurring during the policy period.

Occurrence vs Claims-Made Professional Liability Insurance for Nurses

There are two types of nursing professional liability policies: occurrence-based and claims-made. For both types of policies, the event that triggers the claim has to occur when the policy is in force. However, a claims-made policy only kicks in if the claim for the event is filed within the policy effective dates.

The two types of nursing professional liability insurance are:

• Occurrence-based: Covers claims whenever they are reported as long as the event occurs during the policy’s effective dates; limits are restored each year when the policy renews
• Claims-made: Only covers claims reported during the policy period; this policy has one set of limits during the life of the policy

Claims-made policies are traditionally less expensive and more common than occurrence-based policies, yet they also provide less coverage. For example, a claims-made policy only covers a nurse’s legal fees if the triggering event occurs and the claim is filed when the policy is active. Under and occurrence-policy, only the triggering event needs to occur during the policy effective dates. The claim can be filed even after an occurrence policy expires.

Who Professional Liability Insurance for Nurses Is Right For

If you are a registered nurse, nurse practitioner, traveling nurse or any other type of nurse, you most likely need nursing professional liability insurance. This is often true even if your employer has professional liability coverage because having your own nursing malpractice insurance ensures your interests are protected. Your employer’s carrier has your employer’s needs in mind rather than yours.

Lawsuits can occur whether you are a recent nursing school graduate or an experienced registered nurse. Student nurses who are completing their education in a clinical setting may also want to get professional liability insurance. It provides protection to you, your assets, your license, and your financial future.

Professional Liability Insurance for Nurses Costs

Insurers consider a number of factors when determining professional liability insurance costs. For nursing professional liability, one of the major considerations is the type of nurse you are. Annual policy premiums range from approximately $28 for claims-made coverage for a registered nurse to up to $1,000 for claims-made coverage for a nurse practitioner.

Nursing Professional Liability Insurance Cost Comparisons

Other factors that impact costs include deductible, coverage limits, claims history and location.

• Location: The cost increases for riskier locations, like high-crime areas or states where laws favor plaintiffs.
• Claims history: Nurses who have filed claims in the past often may more for their professional liability insurance. More claims typically mean higher premiums.
• Coverage Limits: Premiums are higher if you select higher coverage limits.
• Deductible: A higher deductible usually lowers your costs, but it also means you have to pay more out of pocket if someone files a claim against you.

Providers of Professional Liability Insurance for Nurses

Great resources for nurses looking to purchase insurance are licensed independent insurance agents and small business insurance companies that specialize in professional liability insurance. Here are some top providers and what they can offer nurses purchasing professional liability insurance.

Insurance321

Insurance321 is an online business insurance market with many options for nurses. The company connects nurses with insurance companies, agents, and brokers that can handle their professional liability insurance needs. With its many outlets for commercial lines offerings, Insurance321 is the right insurer for nurses looking for quality coverage.

Insurance321 has an easy application process that links nurses with a specialized representative. You fill out a brief form online and an Insurance321 representative calls to gather more details and connect you with the best provider for your needs. This makes Insurance321 best for nurses who want assistance from a knowledgeable insurance professional.

CoverWallet

CoverWallet’s free quotes and specialized insurance advisers are a great benefit to nurses. Insurance advisers can help offer coverages to specific nursing risks. CoverWallet’s easy-to-use online system helps nurses view policy information.

As an online insurance broker, CoverWallet partners with many carriers, and that allows nurses to shop around for an insurance policy in one place. It has an online portal designed to simplify the insurance process. Nurses find the application process easy and like having many coverage options specified for their profession.

Travelers

Travelers has specialized coverages to offer nurses. They have a strong commercial lines focus to offer expert insurance knowledge for nurses. Travelers provides innovative claim services to benefit nurses in the event of a claim.

Travelers offers a financially strong insurance company for nurses. A.M. Best rates the financial stability of insurance companies and rates Travelers with their “Superior” rating. Travelers has over $103 billion in total assets and total revenue of $29 billion.

Lockton Companies

Lockton Companies has a very competitively priced nursing professional liability insurance product. Annual premiums start at $31 for student nurses, $28 for registered nurses, and $210 for nurse practitioners. This makes Lockton Companies ideal for budget-conscious nurses, especially a student nurse who may have a hard time finding coverage elsewhere.

Lockton Companies is a financially strong insurance company with an A rating (Excellent) from A.M. Best. Lockton’s advanced online system lets nurses get quotes and buy insurance in under 15 minutes. Once you complete your online application, the company emails your policy immediately. Lockton Companies also has a team of licensed customer service representatives ready to answer any questions you have about your professional liability insurance.

Nurses Service Organization (NSO)

Nurses Service Organization provides nurses malpractice insurance with specialized policy features designed for specific nursing exposures. For example, they offer a defendant expense benefit coverage with up to a $25,000 annual aggregate.

NSO also has an easy quick quote function for immediate price estimates. Plus, the company has nursing professionals on staff who understand the unique risks nurses face and can help you get coverage that protects your practice.

Nursing Professional Liability Insurance Coverage Options

Insurers often offer various coverage options so you can tailor your nursing professional liability insurance coverage to your specific work. For example, you may need specific coverage for nursing services while working abroad. Because professional liability coverage is typically limited to claims made in the United States, you need to look for a policy with worldwide coverage.

Here are some of the different coverage options in professional liability insurance for nurses:

Sexual Misconduct and Abuse Coverage

A sexual misconduct and abuse endorsement covers claims involving allegations that you behaved inappropriately while providing professional services. These endorsements often only cover your liability as a business owner, paying your legal fees in a civil suit. Many providers offer sexual misconduct and abuse coverage but they typically require repayment if the perpetrator is found guilty.

Information Privacy Coverage

Information privacy coverage reimburses the costs of notifying patients of a violation of confidential personal information protection laws. Some policies may also cover fines and penalties you may be obligated to pay under HIPAA, the Health Insurance Portability and Accountability Act of 1996.

Worldwide Coverage

Worldwide coverage insures you as a nurse anywhere in the world. This may be a good coverage if you are part of a nursing study abroad program or providing nursing help somewhere else in the world.

Cosmetics Procedures Coverage

Cosmetics procedures coverage pays claims associated with non-surgical aesthetic procedures that are not usually included in professional liability insurance. Some examples are dermal fillers, laser hair removal, permanent cosmetics, collagen injections, microdermabrasion and Botox.

Personal Liability Coverage

Personal liability covers claims that you are responsible for someone’s bodily injury or property damage in incidents at your home unrelated to employment. This coverage is not usually included in professional liability for nurses.

Defendant Expense Benefit

Defendant expense benefit reimburses you for lost wages and other expenses you may incur when required to attend a trial or hearing as a defendant. Expenses are typically only covered if the proceedings that require your attendance are also covered and costs such as travel and lodging.

License Protection

License protection pays expenses if a complaint is brought against your license before a state licensing board. An example would include a claim against your license and the costs involved to pay for reinstating any state license fees.

Assault Coverage

Assault coverage pays for your medical expenses or property damage if you’re a victim of violence at work or on your way to work. For example, this covers you as a nurse if you are a victim of assault leaving work after a work shift.

Damage to Property of Others

Damage to property of others pays for damage you unintentionally cause to someone else’s property while at your workplace. For example, this covers you as a nurse if you are at a patient’s home and accidentally drop infusion therapy medicine on their carpet causing damage.

First Aid Expenses

First aid expenses reimburses a nurse for equipment used while rendering first aid to an injured person who is not a patient or client. For example, if a nurse uses first aid supplies to help someone injured in an auto accident, first aid expense coverage pays to replace the supplies.

Deposition Expense Coverage

Deposition expense pays for your attorney fees when you require representation in a deposition hearing for a professional liability lawsuit. If you receive a subpoena to testify during the policy period, deposition expense coverage pays for the lawyer. Some insurers only cover attorney fees when they assign the lawyer to your claim.

Coverage for Educational and Consulting Activities

Coverage for educational and consulting activities provides extra professional liability coverage if you’re sued for negligence in your consulting or teaching services. It covers lawsuits for consulting services, or testimony you provided as part of your nursing work.

Tips on Getting Professional Liability Insurance for Nurses

There are many exposures that nurses face in their jobs that professional liability insurance can cover. Below are a few tips you can use to find professional liability insurance that matches the risks you face as a nurse.

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3. Make Sure Your Insurance Carrier is Rated “A” or Better

Nurses should be sure to have an insurance carrier with a financial strength rating of A or better. This indicates a company that has the financial backing to pay claims.

Yasan adds, “There are two places where you can find this information. A.M. Best & Company and Standard & Poor’s are two of the most commonly referenced rating agencies; both evaluate insurance companies’ finances and claims-paying abilities, and then score them based on that information. For A.M. Best & Co., their scores range from A++ to D. For Standard & Poor’s, their scores range from AAA to D.”

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4. Make Sure You Have Consent to Settle Claims

Nurses should make sure to have consent-to-settle clauses in their policies. This gives the policyholder the right to consent to or refuse a settlement even if a carrier doesn’t want to.

Yasan advises, “Will you have the power to say ‘no’ to a potential settlement offer? Can you push to settle or go to trial, even if the carrier doesn’t want to? Some policies include a ‘consent clause’ (sometimes referred to as a ‘consent-to-settle’ clause) that gives you the right not to consent to a settlement if you don’t agree with it.”

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5. Know the Typical Cost of Professional Liability Insurance for Nurses

A great piece of information to have when purchasing professional liability insurance for nurses is the cost. This gives a nurse an idea of what to expect when quoting and securing their insurance policy.

“This can vary from company to company (and by state and specialty),” says Yasan, “but the average premium for RNs and LPNs is around $80 – $100 per year, while the cost of insurance for NPs and APRNs averages around $1,000 per year.”

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Frequently Asked Questions (FAQs)

Here are some frequently asked questions for professional liability insurance for nurses. If you have more questions feel free to use our Ask A Question forum.

Should a registered nurse have malpractice insurance?

Registered nurses should get malpractice insurance because they can be sued for negligence.

Whether the claims are founded or not, the accusation can damage their reputation and financial future. Nursing malpractice insurance covers registered nurses in the course of their employment in the event of a claim.

Can a nurse be sued for malpractice?

A nurse can be sued for malpractice. Nurses, doctors, and anyone else in a healthcare profession can be found liable for not handling a patient properly if the patient suffers damage or harm. Nursing malpractice insurance helps cover a nurse sued for malpractice.

How much is nursing professional liability insurance?

A policy with $1 million per occurrence and $6 million aggregate limits can cost less than $100 per year for RNs and LPNs. Nurse practitioners rates typically cost more. How much your nursing professional liability insurance costs depends on a number of factors, including location and coverage amounts.

Bottom Line

For anyone in the nursing profession, professional liability insurance is essential protection. However, one policy does not fit all. There are many options you can choose from to tailor your insurance to protect your specific needs. Nurses should identify where they have the most risk and look for endorsements to cover these needs.

For a complete review of your best insurance options, contact CoverWallet. CoverWallet has many partnerships established to provide great competitive pricing and product options for nurses professional liability insurance.

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