Nursing Insurance

A Complete Protection

Individuals working in the health sector are vulnerable to several risks because of long work hours, demanding hours in sometimes hazardous conditions, etc. Mistakes happen, such as administering an incorrect dosage of medication to a patient or a lack of proper monitoring. So, this is where nursing insurance can protect you from malpractice lawsuits or any other disciplinary actions that can incur hefty expenses.

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Policies Covered by Nursing Insurance

Malpractice Insurance 

Generally, your employer will provide you with professional nursing insurance. However, when your reputation is at stake, nurses cannot always rely on their employer-provided coverage to cover them fully. So, having proper medical malpractice coverage is crucial because an appropriate medical malpractice insurance policy secures nurses from claims related to:

  1. Injury caused by negligence: Entering the wrong information about a patient’s illness can result in incorrect medication or treatment. So, a patient could needlessly suffer from their condition, sometimes to the point of disability or death. As a result, this could lead to a medical malpractice lawsuit.
  1. Accusations of negligence: If a qualified healthcare provider infringes on their duty to the patient.

General Liability Insurance 

As a nurse, risks are always part of the process when treating a patient. Given that, let’s suppose someone spills coffee in your clinic, and a patient steps in it and slips. As a result of this, they dislocate their shoulder and file a claim against you and the clinic for the injury.

This is where general liability insurance steps in. It protects healthcare professionals from claims occurring on the physical premises of your practice, which may include:

  • Patient and visitor injuries
  • Property damage to patient or visitor belongings
  • Advertising injury

In particular, you may find yourself in need of general liability policy under nursing insurance if you practice medicine in a physical location other than a hospital.

Usually, general liability policies provide adequate coverages for nurses and healthcare professionals. However, it is always a wise decision to look into umbrella insurance as well. So, if an event exceeds your policy’s claim limits, your commercial umbrella insurance will kick in and cover the excess amount.

Commercial Cyber Liability Insurance 

Every industry is at risk of cyberattacks. Health IT Security found that hospitals spent 64% more on advertising costs in order to repair their image and prevent patient loss to competing hospitals after suffering a data breach. Cyber liability insurance mitigates losses after a cyberattack and data breach. It offers two types of coverage to healthcare professionals: 

infographic nursing insurance

First-party cyber liability insurance 

First-party cyber liability insurance provides coverage to your practice to mitigate the impacts of data breaches and cyber-attacks. It covers costs relating to:

  • Customer notification
  • Cyber extortion payments
  • Customer fraud and credit monitoring services
  • Business interruption expenses
  • PR and crisis management

Third-party cyber liability insurance  

Third-party cyber liability insurance provides liability coverage when your medical practice, which is responsible for your client’s online security, suffers from an online attack. Therefore, it includes coverage for:

  • Legal defense costs
  • Settlements costs
  • Other court costs

Business Owners Policy 

From a patient’s injury on your business premises to accidental damage to your costly medical equipment, the chances of mishaps always exist. Therefore, if you are running a private practice, you should consider getting a business owners policy (BOP) that provides nursing insurance.

A BOP bundles commercial property insurance, business interruption insurance, and general liability insurance into one affordable policy that covers risks in your workplace. This policy covers some of the most critical areas of concern for healthcare workers in private practice, such as:

  • Damage to business property
  • Patient injuries and property damage
  • Advertising injuries
  • Forced closure

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Workers Compensation Insurance 

According to the Washington Post, in many states being a nurse is more dangerous than being a correctional officer or a police officer. Despite all the safety measures in the workplace, you cannot always guarantee a safe working environment. Because of this, Healthcare professionals are at risk of being exposed to severe injuries or illnesses in the workplace. So, having nursing insurance plays a pivotal part in financially protecting nurses.

The Occupational Safety and Health Administration also found that healthcare workers face increased risks of workplace violence. Moreover, working with patients who have a history of violence, are under the influence of drugs, or are delirious means that healthcare workers are more likely to be yelled at, kicked, scratched, or even stabbed.

Workers compensation insurance is regulated at the state level. Therefore, each state has its requirements and penalties. Although if you run your practice outside of Texas, this coverage is not optional. But failure to meet mandatory state workers’ compensation requirements will put you on the receiving end of legal consequences.

A workers compensation policy covers employee costs related to:

  • Immediate medical costs
  • Ongoing medical costs
  • Partial lost wages

Commercial Auto Insurance 

Healthcare practices use various kinds of vehicles, ranging from regular cars to specialized ambulances. Additionally, if any of these vehicles face an accident or collision, commercial auto insurance will cover the damages. It is also an important component of nursing insurance.

Usually, coverages in a commercial auto policy are:

  • Property damage liability coverage
  • Bodily injury liability coverage
  • Combined single limit
  • Uninsured M motorist C coverage
  • Collision coverage
  • Comprehensive physical damage coverage
  • Medical payments

If your practice uses commercial vehicles, commercial auto insurance is mandatory unless your business is located in Virginia or New Hampshire.

Directors and Officers Insurance 

Large-scale practices and hospitals, in particular, require D&O insurance. While serving as a board member has its benefits, it also demands additional responsibilities. There are times when directors and officers of medical practice might make wrong decisions, opening the way to a lawsuit. Hence, If you work as a medical director or an administrator at your practice, you will need D&O insurance to protect yourself personally.

Usually, it provides coverage for:

  • Allegations regarding employment practices
  • Cyber data fallout

Additionally, you can tailor your policy for specific D&O coverages to better suit your needs.


Standard Exclusions of Nursing Insurance

Nursing insurance has a few exclusions you should be aware of. These exclusions include, but are not limited to:

  • Acts committed under the influence of alcohol or drugs.
  • Sexually inappropriate behavior.
  • Criminal activities or frauds.
  • Claims from actions performed in a business not pre-mentioned in the policy.
  • Unauthorized disclosure of patient records.

Factors that Influence the Cost of Nursing Insurance 

  • Type of healthcare services offered
  • Business assets
  • Type of medical equipment
  • Number of employees
  • Revenue
  • Business location

For more insurance-related content, check our insurance blogs.

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