But My Employer Has Insurance

Malpractice Insurance Misconception #2: "I don't need insurance because my employer covers me under their insurance

Although most hospitals cover nurses under the facility’s insurance, the insurance will only cover the nurse while the nurse is working at the facility. If the nurse has quit the hospital may choose not to cover the costs of the nurse's defense. If the nurse was terminated, the hospital is more inclined not to pay for the nurse's defense, especially if the lawsuit is due to the nurse's negligence. The insurance policy may not cover incidents that are caused by the nurse exceeding the nurse’s scope of practice (for example administering medication without a physician's order).

When the employer is a physician, a clinic, etc., nurses may or may not be insured under the employer's liability policy. It is important to know how much coverage is provided to the nurse.

If there is a lawsuit, there will most likely be a complaint filed with the Board of Nurses and most employer insurance will not cover the costs of defending the nurse before the Nursing Board. Another problem with using the facility’s insurance is that the loyalty is to the facility first and then to the nurse.

There have also been a few lawsuits filed against the negligent nurse by the hospital that was subjected to a lawsuit: If the hospital loses a lawsuit, the hospital may then sue the nurse to recover the damages. So in a case such as this the hospital is not going to pay for the nurse’s defense against its own suit.

Conclusion: All nurses should have their own malpractice insurance policies