FAQ > Professional Liability Coverage
- Does having my own individual professional liability insurance policy make me a more likely target for a lawsuit?
- Why do I need an individual professional liability policy? Won't my employer's insurance coverage protect me?
- Will my policy provide coverage if I'm assaulted on the job?
- What is the difference between occurrence coverage and claims-made coverage?
- I just changed jobs. Will I have to pay more for my liability insurance?
- I work for several different employers. Will that affect my coverage or rate?
- I'm starting my own company. Do you have a policy that would cover my Company for malpractice?
- I just received a copy of my certificate of insurance. I am currently listed as an LPN, but I am now an RN. What do I need to do to change my certification?
- I have an active license, but I am not going to be working for a while. Should I keep my coverage active?
- I wish to upgrade my insurance coverage (limits of liability, hours I work per week). How do I make this change?
- I would like to decrease or reduce my insurance coverage (limits of liability, hours I work per week, etc.) How do I make this change?
- I would like to cancel my policy, what do I do?
1. Does having my own individual professional liability insurance policy make me a more likely target for a lawsuit?
No, having your own professional liability insurance coverage does not make you a more likely target for a lawsuit. The question you may want to ask yourself is "What if I don't have enough coverage and I'm sued?"
The reality is that when something happens and a patient is injured, most attorneys will name in the lawsuit everyone who was involved in the patients' care. That happens whether you have your own coverage or not. But if you do have your own coverage, and are named in a malpractice suit, your policy can protect you by preparing you for a deposition and paying for your defense and any settlement or judgment against you.
In addition, no one knows, not even the patient's lawyer, that you have your own professional liability insurance. We can't confirm your policy's existence to anyone other than you without your expressed written consent. So you won't be named in a lawsuit just because you have coverage.
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2. Why do I need an individual professional liability policy? Won't my employer's insurance coverage protect me?
Professional liability insurance protects you against allegations of malpractice. Your employer may provide coverage for you, but it may not cover you in all cases. Read on, and find out why it is important to have your own individual professional liability coverage.
Our customers tell us the number one reason they carry their own policy, in addition to any coverage they may have at work, is that they like the peace of mind that having their own policy affords them. They like knowing that if something happens at work or even while off duty, they can rely on their own policy to protect them against allegations of professional malpractice.
Your employer's policy may cover you, but only up to a point. Your employer's policy is designed to fit their own needs and protect their interests first. If you have your own individual protection, you will have the benefit of your own representation, when needed, that is concerned specifically with your interests.
In Healthcare today, facilities are being bought while others are being closed. Many professionals are leaving their employers and beginning their own practices. What happens if you are named in a lawsuit for an incident that occurred two years ago and you no longer work at that facility, or, worse, it's now closed? Who would you turn to? This is when having your own policy truly provides peace of mind! Your employer's policy probably only covers you while you are at work. It is unlikely that your employer's policy protects you if you give advice to a friend or neighbor after hours, perform volunteer work, or moonlight outside of your full-time job. The professional liability policy offered through NSO is individual coverage that will protect you for these activities as well as provide coverage over and above your employer's, even if you change jobs.
Should you buy your own policy? That is a personal decision that you need to make. But if you do buy your own policy, you have the comfort of knowing that you are protected against the allegations of professional malpractice, on or off the job, 24 hours a day. Our customers agree that the insurance premium is a small price to pay for a whole lot of peace of mind.
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3. Will my policy provide coverage if I'm assaulted on the job?
Our policy provides protection for medical expenses or property damage if you are assaulted at work or during work related travel. This is excess coverage over any other available insurance covering such loss. (Assault coverage not available in Texas.)
Many studies show that violence in the workplace has increased, so assault coverage is more valuable than ever. And because our policy defines "workplace" as anywhere you are providing professional services, this coverage will travel with you into the field.
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4. What is the difference between occurrence coverage and claims-made coverage?
An occurrence policy provides coverage for a claim that occurs during the policy period, regardless of when the claim is reported.
For example, let's assume you carry a malpractice policy from December 1, 1999 to December 1, 2000 and it is an occurrence policy. You never renew the policy. On August 16, 2001 you receive notice that you have been named in a malpractice lawsuit for something that happened on February 4, 2000. Because the incident occurred during your coverage period, your policy can provide protection for a covered claim, even though you received notice of the claim after your policy ended.
A claims-made policy provides coverage for an incident that occurs during an active policy period only if the claim is also filed during an active policy period.
Suppose you have a claims-made policy from December 1, 1999 to December 1, 2000 and do not renew that policy. On August 16, 2001 you receive notice that you have been named in a malpractice lawsuit for something that happened on February 4, 2000. You would not have coverage under your claims-made policy because your coverage was not active when the claim was made.
If you have a claims-made policy, you may need to give some additional thought before you decide to cancel or non-renew your policy. If you decide to end a claims-made policy, you can purchase "tail" coverage through that policy's carrier. Tail coverage will extend the time that a claim can be reported, but the incident will still need to occur while the policy was active.
If you are not sure whether your policy through NSO is occurrence or claims-made coverage, you can e-mail us or call us with your policy number, and we'll confirm your coverage for you.
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5. I just changed jobs. Will I have to pay more for my liability insurance?
One of the benefits of the Nurses Professional Liability program offered through Nurses Service Organization is that our premium will not change if you change jobs. If you are an RN, LPN, or LVN, you will be able to enjoy the same benefits for the same premiums as all of the other nurses in your state. For example, if you take a position in a nursing home, you would still pay the same premium as a nurse in a hospital or in home health.
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6. I work for several different employers. Will that affect my coverage or rate?
Please be assured that your policy is designed to provide coverage for you anywhere you work within the scope of your license. It is not necessary to record worksites on your policy and there is no additional premium, as this protection is automatically afforded to you 24-hours a day, at any location.
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7. I'm starting my own company. Do you have a policy that would cover my company for malpractice?
Even though a company cannot commit malpractice, your company has liability exposures. NSO offers Professional Liability insurance to nursing firms as well as to individual nurses. The coverage we provide to nursing firms offers many of the same coverages we provide under our individual program and has options that you can tailor to meet the specific needs of your firm such as limit options, general liability and separate limits of liability. Click here for more information on our affordable liability coverage for nursing firms.
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8. I just received a copy of my certificate of insurance. I am currently listed as an LPN, but I am now an RN. What do I need to do to change my certification?
We offer the same rates and benefits to RN's and LPN's. All you need to do to change your licensure on your policy in this case is to write us a note. You can send us an e-mail by clicking here. Include your name and policy number in your e-mail and we will update your policy and send you a revised Certificate of Insurance.
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9. I have an active license, but I am not going to be working for a while. Should I keep my coverage active?
If you plan on keeping your license active, you have a responsibility to anyone to whom you give advice, any place that you volunteer and any situation that requires emergency care. Your nursing license represents years of study and practice, and needs to be protected at all times. One option for you is to take advantage of our Retirement/Leave Discount, which can include family leave, change to a non-nursing occupation, retirement or disability. This discount offers limited coverage at 50% off of our full-time nursing premium. All you need to do to change your licensure on your policy in this case is to write us a note. You can send us an e-mail by clicking here.
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10. I wish to upgrade my insurance coverage (limits of liability, hours I work per week, etc.). How do I make this change?
For your protection, we ask that any coverage change you would like to make to your policy be requested in writing.
If you would like to request to change your coverage, you can e-mail us; be sure to include your name, address, policy number, and requested change.
If you would like to know if there is a change in your annual premium based on your coverage change, you can call 1-800-247-1500 and we will help you to proceed.
Note that in any case we will not be able to change your coverage until we have received the appropriate additional premium.
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11. I would like to decrease or reduce my insurance coverage (limits of liability, hours worked per week, etc.) How do I make this change?
You can e-mail your written request to reduce your coverage along with your name, address, and policy number. Any refund of premium, if one is due, will be sent to the address on the policy, so be sure to include your current address in the request.
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12. I would like to cancel my policy, what do I do?
Before you cancel your policy, please reconsider-- if you are doing it solely because you are temporarily leaving your position, we may be able to offer you a 50% discount on your premium and adjust your coverage. This allows you to have the peace of mind that you are still protected while maintaining an active license.
Also, if you are covered by an employer's plan, be sure that you understand your coverage through them before you end your individual coverage. Your employer's policy provisions may differ from this policy in ways that will leave you underprotected when you need protection the most. As a start, check to see if your employer will provide each of the benefits that our policy provides.
If, after consideration, you determine you would still like to cancel your policy, you can do so by submitting a written request to cancel by fax or mail (see below for contact information). Your policy will be canceled based on the date we receive your notification or your request. If you are eligible, you will receive a refund of any unused premium within two weeks of our processing your request.
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