[hen-ui-text variant=”b4″ tag=”em”]In our [hen-ui-link href=”/ask-a-nurse/”]Ask a Nurse[/hen-ui-link] series, experienced nurses provide an insider look at the nursing profession by answering your questions about nursing careers, degrees, and resources.[/hen-ui-text][hen-ui-separator /][hen-ui-card variant=”background-gray”] [hen-ui-card-content] [hen-ui-text variant=”b4″]Question: What is personal liability insurance, and should I get it?[/hen-ui-text] [/hen-ui-card-content][/hen-ui-card][hen-ui-heading variant=”h2″]What Is Personal Liability Insurance?[/hen-ui-heading][hen-ui-text variant=”b4″]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.[/hen-ui-text][hen-ui-text variant=”b4″]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.[/hen-ui-text][hen-ui-text variant=”b4″]Personal liability insurance can also be referred to as:[/hen-ui-text][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]Medical malpractice insurance[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Nursing malpractice insurance[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Errors and omissions insurance[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][hen-ui-card variant=”background-white” border=”stroke” padding=”lg”] [hen-ui-card-content] [hen-ui-heading variant=”h3″]Pros of Personal Liability Insurance[/hen-ui-heading][hen-ui-text variant=”b4″]Many nursing forums advise nurses to carry personal liability insurance, even if you are covered through your facility. Some nurses believe that despite facilities having coverage for you, they might protect themselves first, referring to it as “throwing you under the bus.”[/hen-ui-text][hen-ui-text variant=”b4″]It is advantageous to have personal liability insurance. If you get sued, facilities might limit coverage, and you could be responsible for the rest of the claim. This is when your personal liability insurance kicks in.[/hen-ui-text][hen-ui-text variant=”b4″]Other pros to personal liability insurance include:[/hen-ui-text][hen-ui-list variant=”unordered” bullet-style=”check”] [hen-ui-list-item][hen-ui-text variant=”b4″]Covers medical negligence[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Covers failure to follow the Health Insurance Portability and Accountability Act and protect personal healthcare records[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Covers misrepresentation[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Covers incorrect advice[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Pays for legal fees like defense, judgement, and settlement costs[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Pays for loss of income from attending trials and/or dispositions[/hen-ui-text][/hen-ui-list-item][/hen-ui-list] [/hen-ui-card-content][/hen-ui-card][hen-ui-card variant=”background-white” border=”stroke” padding=”lg”] [hen-ui-card-content] [hen-ui-heading variant=”h3″]Cons of Personal Liability Insurance[/hen-ui-heading][hen-ui-text variant=”b4″]While personal liability insurance can be helpful, it may not be the best choice for everyone. One of the main deterrences of personal liability insurance is cost. Although costs vary, if it’s not in your budget, then you may opt out of carrying insurance. Some nurses also have additional medical malpractice insurances, which can get pricey. Other cons include:[/hen-ui-text][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]Limited coverage[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Complicated language and complex policies[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Gaps in your coverage dates[/hen-ui-text][/hen-ui-list-item][/hen-ui-list] [/hen-ui-card-content][/hen-ui-card][hen-ui-heading variant=”h2″]Why Do Nurses Get Sued?[/hen-ui-heading][hen-ui-text variant=”b4″]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.[/hen-ui-text][hen-ui-text variant=”b4″]Nurses also get sued for:[/hen-ui-text][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″]Medication errors[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Unprofessional conduct[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Failure to take action[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″]Injury[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][hen-ui-heading variant=”h2″]What Are Different Types of Liability Insurances?[/hen-ui-heading][hen-ui-text variant=”b4″]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.[/hen-ui-text][hen-ui-heading variant=”h3″ class=”text-secondary”][hen-ui-icon icon=”minus” color=”primary” aria-hidden=”true” /]Claims-made Insurance Coverage[/hen-ui-heading][hen-ui-text variant=”b4″]With [hen-ui-text tag=”strong” weight=”bold”]claims-made insurance coverage[/hen-ui-text], your insurer will cover claims filed during your policy period with added features such as a retroactive date or an extended-reporting period.[/hen-ui-text][hen-ui-text variant=”b4″]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.[/hen-ui-text][hen-ui-text variant=”b4″]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.[/hen-ui-text][hen-ui-heading variant=”h3″ class=”text-secondary”][hen-ui-icon icon=”minus” color=”primary” aria-hidden=”true” /]Occurrence-based Insurance Coverage[/hen-ui-heading][hen-ui-text variant=”b4″][hen-ui-text tag=”strong” weight=”bold”]Occurrence-based insurance coverage[/hen-ui-text] 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.[/hen-ui-text][hen-ui-heading variant=”h3″]Additional Insurances[/hen-ui-heading][hen-ui-text variant=”b4″]There are different types of liability coverage, too. You may choose to have personal liability insurance and add additional insurances. Others include:[/hen-ui-text][hen-ui-list variant=”unordered” bullet-style=”bullet”] [hen-ui-list-item][hen-ui-text variant=”b4″][hen-ui-text tag=”strong” weight=”bold”]Workers’ Compensation Insurance:[/hen-ui-text] This covers work-related injuries to help pay for healthcare bills or additional treatment like physical therapy.[/hen-ui-text][/hen-ui-list-item] [hen-ui-list-item][hen-ui-text variant=”b4″][hen-ui-text tag=”strong” weight=”bold”]Commercial Property Insurance:[/hen-ui-text] 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.[/hen-ui-text][/hen-ui-list-item][/hen-ui-list][hen-ui-heading variant=”h2″]How to Pick the Right Coverage for You[/hen-ui-heading][hen-ui-text variant=”b4″]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.[/hen-ui-text][hen-ui-text variant=”b4″]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.[/hen-ui-text][hen-ui-text variant=”b4″]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.[/hen-ui-text][hen-ui-separator /][hen-ui-text variant=”b4″ tag=”em”]In our [hen-ui-link href=”/ask-a-nurse/”]Ask a Nurse[/hen-ui-link] series, experienced nurses provide an insider look at the nursing profession by answering your questions about nursing careers, degrees, and resources.[/hen-ui-text]