Every Nurse Needs Insurance!!

 I have posted before on why nurses should obtain malpractice insurance and the myths nurses are told that keeps them from protecting themselves.  Once again I have to present options to a client and because of the HUGE expense of fighting the BON, the nurse is unable to make the BON prove up the allegations with evidence.  Over and over, I shake my head with disgust that a nurse has to settle for discipline when the facts of the case do not support discipline.  Until nurses have the financial ability to fight the BON, the Board will continue to do what they want and continue to increase the level of discipline and to impose discipline when it is not warranted.  Please buy insurance and if you are not sure, read my earlier posts on exposing the myths.

Should nurses get malpractice insurance?

The answer is simple and quick---YES, YES, YES!!!  Nursing Defense Attorneys advise nurses who interact with patients to carry their own malpractice insurance.

The biggest worry is not getting sued in civil court, but rather an investigation by the Board of Nursing.  Malpractice insurance typically covers professional license defense and this is a HUGE reason to pay a little money every year to a nursing malpractice insurance company to ensure that if a complaint is filed against you there is money to hire an experienced defense attorney.

Nurses continue to refuse insurance due to various myths:

1. I am a good nurse and won't get sued/reported to the BON:  Good nurses are reported every single day to the BON or named in a lawsuit.  Good nurses make mistakes and are reported or sued; being good at your job is not an absolute defense.  Good nurses can be the victim of mistaken identity or identity theft.  What about the nurse who had her information stolen and it was used to write fictitious prescriptions.  The board ignored the nurse's denial, samples of her handwriting, and letters from her employer and pharmacist stating the prescriptions were not hers.  The nurse had to pay legal fees, expenses and a private investigator fee out of pocket before the BON would believe she did not write the prescriptions and dismiss the case.  Bad things can happen to Good nurses.  Good nurses get their own malpractice defense policy.

2. My employer has insurance so I do not need my own policy:  I have never seen an employer's insurance used to provide legal defense for a complaint to the BON.  In addition, since most complaints originate from the employer, why would the employer also provide the financial means to defend against their complaint?  If you use your employer's malpractice insurance company the company/attorney's concern is the employer first.  This means any advice given to the nurse must first be a benefit to or not harm the employer.  If a nurse wants a non-biased defense, the nurse needs his/her own malpractice defense policy.

3. Having your own insurance will get you sued:  Plaintiffs find out a nurse has insurance two ways-first the nurse tells them (do not tell anyone you have insurance when an incident/error occurs) OR AFTER the lawsuit is filed interrogatories are filed asking if the nurse has insurance (so the insurance did not cause the lawsuit; they had already decided to sue you before they knew you had insurance).  Get your own malpractice defense policy because doing so will NOT cause you to be sued.

4. It is too expensive:  Not really.  A nurse told me that she obtained a policy and paid premiums for 10 years and the total amount was still less that what hiring an attorney out of pocket would cost her.  There is also a huge peace of mind aspect when you know you have the  money to take your case to the hearing stage and fight the allegations/complaint against you.  Many of the disciplinary actions occur because the nurse was forced to accept what the BON offered in settlement because the nurse could not afford to fight the BON (hearings before an Administrative Law Judge can cost anywhere from $10,000 to $30,000 or more depending on the length, number of witnesses and experts, and the complexity of the case; civil cases cost even more).

I received a sad phone call from a nurse who received notice she was named in a lawsuit.  I told her to contact the hospital immediately to see if they would cover her legal defense because they were probably also named in the lawsuit.  The nurse got very upset because the hospital had declared bankruptcy and was closed.  This meant the hospital was no longer in business and she was the only one named in the lawsuit meaning she was responsible out of pocket for her defense, expenses, and ultimately if she lost the case, she would be responsible for the cost of the judgment!!!   Very expensive and it could have been avoided if she had her own malpractice defense policy.

5. I was told in nursing school/at a CNE seminar/by a co-worker/etc. that I should not get insurance because.... Whatever the reason and no matter who is telling you, they are wrong.  The people who defend nurses are in agreement that nurses need to carry their own policy for malpractice/professional license defense.

How to find a policy:  Search for nursing malpractice insurance and talk to the various providers.  Make sure the policy:
* covers professional licensure defense
*allows you to pick your OWN attorney [Some insurance companies have a list of attorneys you must choose from and these attorneys may not have experience with the BON or not enough experience]
*has a cap per incident of at least/a minimum of $25,000 [this usually provides enough money for a BON investigation and a normal hearing; there are some policies that have a cap of $5,000-$10,000 per incident and that is not enough to cover the investigation and possible hearing]

Economic downturn and nursing

As I hear and read about the financial outlook for the US and I see the legislation that is getting signed into law for Texas nurses, I want to take the time to urge ALL nurses to get malpractice insurance. The insurance is not to protect you against lawsuits (but it does), it is to insure your license. Most malpractice insurance policies protect a nurse's license in Regulatory actions or what is commonly called licensure defense.

It is awful to have a complaint filed you, but to then not be able to afford legal assistance is stressful. Insurance policies are not expensive especially when you consider that you are insuring your career. In my January 2009 blog, I list some commonly found insurance companies/agents in order to give nurses a place to start searching for a policy. And if someone tells you that you don't need a policy, don't believe them. I have posted replies to all the myths surrounding malpractice insurance.

I am serious - get malpractice insurance now

You may have read my other posts regarding malpractice insurance but as I sit here reading the news, I have to say it again - Get Insurance Now!

The economy is in tough times, which means it is not a good time to have concerns about keeping your job. The Nursing Board is asking for additional funds this Legislative session in order to hire more staff to process complaints. Complaints against nurses have increased and most of these involve minor errors or incidents (in other words, these are not "bad" nurses). It is peace of mind to have insurance that will pay for your legal representation before the Board and your expenses and the yearly premiums for insurance are very cheap.

To make it easier for you and because so many are still not getting insurance, I did a quick search for nursing malpractice insurance and the following are companies that you can contact to inquire about insurance (I do not work for these companies and this list is by no means exhaustive since I did not look much past the first page, it is just a way to get you moving on getting insurance and you should definitely check out many policies to be sure you get the best fit):

www.bbi-tx.com
www.nso.com
www.medmal4nurses.com
www.proliability.com

Be sure to ask questions about the insurance policy:
Do you cover nurses in Texas? In ______ specialty area?
Can you pick your own attorney (important) or is one assigned?
What are the coverage limits (there needs to be at least $10,000 for licensure cases, but more is better in case there is a drawn out hearing)?
Does the policy cover administrative/licensure actions (VERY important)?
What expenses are covered under the policy?

Suing Nurses

There is a good article that just came out - "Malpractice Suits Against Nurses On The Rise". They also suggest that nurses carry malpractice insurance, which is something I repeatedly tell nurses. Even if you are not sued for malpractice your chances of being reported to your state licensing board have also increased and malpractice insurance would help with legal representation costs.

My employer will pay for my legal representation

I just spoke with a nurse who was under the common misconception that the employer will pay for the nurse's legal representation if the nurse is sued or reported to the Board because the employer carries malpractice insurance for the nurse. The glitch is that this nurse no longer works for the employer and the nurse is now without insurance coverage. It is too risky and costly to rely upon your employer's coverage, all nurses should obtain their own malpractice insurance coverage that also covers regulatory/licensure issues.

Recently I spoke with two nurses that were surprised that the malpractice insurance they thought was an unnecessary expense (but one they felt they should go ahead and pay) ended up paying for my representation of them before the Board of Nursing. I read in a forum post that this one nurse thought attorneys would cost around $40 -$100 an hour. However, most attorneys (depending on multiple factors like location, specialty, certification, years of experience etc.) charge $150 - $500 an hour. It is such a relief to be able to afford the legal representation you need and must have. Please get insurance today so that it is there if you need it.

Good Nurses Don't Need Malpractice Insurance

Wrong, Wrong, Wrong. "Good" nurses get sued or reported to the Nursing Board all the time. The biggest excuse I hear from nurses as to why they do not carry malpractice insurance is that they did not think they needed it. Every nurse that does any kind of patient care needs to carry their own malpractice insurance that also covers license defense before the Nursing Board. Once an incident happens it is too late to obtain insurance, so take care of yourself and your career - get malpractice insurance today.

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

Malpractice Insurance Will Get You Sued

Lots of nurses will not get malpractice insurance because they have been told that having malpractice insurance will get a nurse sued. WRONG!!!

Plaintiffs (the people suing) will not know initially whether a nurse has malpractice insurance or not unless the nurse voluntarily informs the potential plaintiff that the nurse has malpractice insurance. The decision on whom to name in a lawsuit is not based on whether potential defendants (the nurse being sued) have malpractice insurance or not. Whether a nurse has insurance is not even found out until after the lawsuit has been filed and the parties are in the discovery phase of the lawsuit.

Note however that having malpractice insurance might keep a nurse in a lawsuit. Some attorneys will keep a defendant in a lawsuit if the defendant has insurance to pay for potential settlements or judgments. In the past, not having insurance benefited nurses because attorneys would drop nurses out of a lawsuit because the nurses did not have "deep" pockets and did not typically have malpractice insurance. So, if there was not much money available the nurse was dismissed. Now, many attorneys will not dismiss any defendants from a lawsuit if there is potential to get any amount of money from them (plus nurses are being paid much better now).

So, malpractice insurance will not get a nurse sued. Nurses should purchase their own malpractice insurance policy with a license defense rider.

Protect Yourself Now

I just spoke to another nurse who is trying to find the money to defend herself against an investigation by the Board. It is extremely risky and dangerous to represent yourself before the Board, so it is crucial that all nurses obtain legal representation. You need an attorney whether you are guilty or not and the Board does not think you are guilty just because you have an attorney. (More in a future post about why nurses should not represent themselves)

What can a nurse do today to plan for a potential investigation by the Board? Purchase malpractice insurance!!!! Be sure the policy contains licensure protection or a rider to cover any actions before the Nursing Board. By buying malpractice insurance with licensure protection, a nurse not only obtains legal representation for a lawsuit but also for legal representation before the Board of Nursing. But, a nurse cannot buy insurance for an incident that has already occurred. The insurance must be in place before an occurrence.

It costs money to defend yourself against a lawsuit or an action by the Nursing Board. Even if you are innocent, you will still have to defend yourself. The costs include legal fees, consultant fees, expenses, expert fees and more. It is cheaper and provides peace of mind regarding your finances to have malpractice insurance.

Watch for future posts explaining the misconceptions of malpractice insurance and how to find insurance.