Malpractice insurance is a type of insurance that covers the cost of any legal action against an individual or company if they are found guilty of malpractice. It is meant to protect both the healthcare provider and their employer if they are found guilty.
Different Types of Nursing Malpractice Insurance Policies
Nurses should have medical professional liability insurance coverage to protect their assets and employers’ assets. Before choosing one for themselves, nurses should consider the three medical professional liability policies. The three types of medical professional liability policies are:
- Errors and Omissions Policies. Protect nurses from errors that were made during a nursing procedure or diagnosis.
- Direct Professional Liability Policies. Protect nurses from lawsuits against them for negligent acts that caused harm to a patient.
- General Liability Policies. Protect if a nurse is sued for something outside their profession, like an automobile accident or dog bite.
Nurses employed by a hospital or other healthcare facility typically have coverage through their employer, but they must purchase their insurance policy if they work as independent contractors.
Debunking Myths and Misconceptions
Many myths and misconceptions surround nurses and professional liability insurance, also known as nursing malpractice insurance. The American Nurses Association has outlined the common myths and why nurses should know about the benefits of having malpractice insurance. The sections below debunk these myths and discuss the facts:
Your Facility Insurance Covers all Malpractice Lawsuits
While it is true that your facility insurance will cover any lawsuit, it will likely not cover all of your legal expenses, which can often exceed the amount of the settlement. Legal expenses include court costs, attorney fees, and expert witnesses. If you don’t have a top medical malpractice attorney in Maryland, you could have a significant amount of debt even if the lawsuit is resolved in your favor.
The Malpractice Insurance is Meant for Bad Nurses and Poor Practitioners
The truth is that malpractice insurance is meant for all nurses and practitioners. It is there for the protection of the nurses and practitioners so that they do not have to worry about being sued for their mistakes or bad judgment calls that they might make.
The malpractice insurance will provide a settlement for the victim, but it will also settle for the victim’s lawyer. If the nurse or practitioner is sued and wins, their malpractice insurance company will pay the settlement. The malpractice insurer will then turn the case into a “calculated loss” and pay the victim’s lawyer by deducting it from their future premiums.
Having a Malpractice Insurance is Additional Expense as Your Employer Covers You
A misconception about malpractice insurance is that it is an additional expense for the employee when in reality, it’s an expense that employers cover for their employees. Employers do this because they want to protect themselves from any liability they might face due to their employees’ actions. Malpractice insurance is an important thing that all doctors need. Insurance gives them peace of mind- knowing they are always protected no matter what happens. The premiums are small and affordable- saving you up to $2,000 each year. It is worth considering investing in as well as your employer covers you!
Your License is Not at Risk, and Your Employer Will Cover You
This is a myth, and the truth is, it is not always the case that your employer will cover you. There are many cases where an employer will not cover you when your license has been suspended or revoked. Some of these cases include:
- When the suspension or revocation was caused by an act of negligence on the part of the employee.
- When a violation of company policy causes the suspension or revocation.
- There are grounds to believe that the employee’s continued employment would be detrimental to their employer.
- There are grounds to believe that continued employment would endanger public health, safety, or welfare.
Medical Malpractice Claims Increase the Health Care Costs
The study by the RAND Health Organization found that the cost of medical malpractice is not high. The study also found that doctors are no more likely to perform unnecessary tests or procedures to avoid lawsuits than otherwise.
Doctors and hospitals do not order more expensive tests or procedures to avoid lawsuits. In some cases, doctors and hospitals may order fewer tests or procedures because of fear of lawsuits. Doctors can also be held liable for not following up on lab results or not telling patients about potential side effects from medications.
Malpractice insurance doesn’t necessarily mean you made mistakes. Patients may sue when they think you are responsible for their outcome, even when the belief is unfounded or wrong. You want to protect yourself with the insurance types explained above. Contact your medical malpractice attorney for legal counsel if you face a charge.
