Everything to Know About NSO Nursing Malpractice Insurance

What You Need to Know About Your Coverage

 

What is nursing malpractice insurance?

Malpractice insurance (also known as professional liability insurance) is designed to help protect professionals and businesses from malpractice claims that allege an error related to the performance of professional services resulting in some form of damages or harm.  While malpractice claims typically involve a physical injury, they may also include some form of negligence such as violating patient rights, verbal abuse, or unprofessional conduct. Whether negligence is real or perceived, a malpractice claim can have a devastating effect on your career, license, finances, and reputation. NSO malpractice insurance provides coverage to help protect your livelihood. Some key policy features include license protection, HIPAA violations, deposition representation, and much more.  

Many nursing professionals – including RNs, LPNs, LVNs,  NPs, CRNAs, CNSs, nursing students, and more – carry professional liability insurance to safeguard their careers from a costly malpractice lawsuit. NSO is a leading provider of individual nurse malpractice insurance, and we’re committed to putting your needs first throughout your career. Coverage through NSO helps protect you 24/7, on and off the job, giving you peace of mind to focus on your patients.
 

What are the limits of NSO malpractice coverage? 

A standard NSO professional liability insurance policy includes:
  • Up to $1 million per claim for covered incidents.
  • Up to $6 million ‘aggregate,’ meaning the policy will pay up to $1 million per claim, not to exceed $6 million in claims per year.
Additionally, the policy contains several benefits, each with their own sub-limits (see more details here). If you currently have coverage through NSO, please check your certificate of insurance for your policy limits. If you require alternate limits, please call us at 1-800-247-1500 (Monday – Friday, 8:00 am – 6:00 pm ET). 
 

What is the average cost of a malpractice claim against a nursing professional?

A malpractice claim can be devastating to your career and finances.
  • $210,513 was the average cost of a nurse malpractice claim in 2020 (a 4% increase from 2015)1.
  • $332,137 was the average cost of a nurse practitioner malpractice claim in 2022 (a 10.5% increase from 2017)2.
It’s not just lawsuits that can cost you. Someone can file a complaint against your license with the State Board of Nursing, resulting in possible fines or the revocation of your license. Defending your license in such matters can quickly add up:
  • $5,330 was the average cost of a nurse license protection matter in 2020 (a 33.5% increase from 2015)1.
  • $7,155 was the average cost of a nurse practitioner license protection matter in 2022 (a 19.5% increase from 2017)2.
Case settlements aren’t the only aspect of a malpractice allegation that can spell disaster for your wallet. Malpractice lawsuits and licensing board matters often require an attorney to defend your interests. Even if the outcome to the case is positive, legal fees can add up quickly. Malpractice lawsuits may take months or even years to reach a resolution.

For more eye-opening facts about the true cost of malpractice, including real case study scenarios, review our nurse claim report and nurse practitioner claim report.
 

What types of incidents does a NSO professional liability policy cover? 

Malpractice claims can involve a variety of allegations, spanning from physical injury to unprofessional conduct and beyond. For this reason, NSO professional liability insurance is broad spanning to adequately safeguard your career. Additionally, the policy includes a multitude of coverage extensions to cover associated expenses, such as hiring an attorney for a deposition, defendant lodging and travel expenses, and fines associated with HIPAA privacy violations.   

A commonly used coverage extension is License Protection to address complaints filed against nurses with state boards. NSO nurse malpractice insurance includes up to $25,000 of reimbursable license protection coverage and partners with The American Association of Nurse Attorneys (TAANA) to provide an expert attorney to help guide you through the process. Having an attorney at your side can make the difference between keeping or losing your professional license.   

What else is included in a NSO malpractice insurance policy beyond License Protection and Professional Liability?  
 
  • Information Privacy Coverage (HIPPA) – up to $25,000 annual aggregate 
  • Defendant Expense Benefit – up to $25,000 annual aggregate
  • Deposition Representation – up to $10,000 annual aggregate
  • Assault Coverage – up to $25,000 annual aggregate
  • Medical Payments – up to $25,000 per person or $100,000 annual aggregate
  • First Aid – up to $10,000 annual aggregate
  • Damage to Property of Others – up to $10,000 annual aggregate
  • Media Expenses – up to $25,000 annual aggregate
For a full list of coverage extensions, click here.
 

What is the average cost of malpractice insurance through NSO?

At NSO, we pride ourselves on being a leading provider of cost-effective insurance solutions for nursing professionals. While your specific premium is calculated based on various factors – such as your profession, state of residence, and whether you are employed part-time or full-time – we work with you to provide coverage that meets your needs.

The annual rate for most nurses is $131*! Additionally, we offer several ways to help make coverage more affordable:
  • Flexible payment plan options
  • 3-year discount program for new graduates
  • Discounts available for nursing students, retirees and leave of absence 
  • Risk management discount opportunities
 

How do you get in touch with NSO? 

Want to contact NSO? You’re in the right place! Explore our website for helpful information on our nursing professional liability insurance program, robust risk management resources (case studies, claim reports, articles and more), and more!

If you would like to speak with a team member or report a claim, please call us at 1-800-247-1500 (Monday – Friday, 8:00 am – 6:00 pm ET). We’ll be happy to assist you with any questions or issues you may have.

1Nurse Professional Liability Exposure Claim Report: 4th Edition: Minimizing Risk, Achieving Excellence.
2Nurse Practitioner Professional Liability Exposure Claim Report: 5th Edition: Minimizing Risk, Achieving Excellence.
*Rate is for a full-time employed nursing professional. Rates vary state by state.

All descriptions, summaries or highlights of coverage are for general informational purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy. 
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Frequently Asked Questions

You have questions. We have answers. (It's why we're here.)



What kinds of activities might trigger a disciplinary action by a licensing board or regulatory agency? 

The fact is anyone can file a complaint against you with the state board for any reason—even your own employer—and it doesn’t have to be solely connected to your professional duties. All complaints need to be taken seriously, no matter how trivial or unfounded they may appear. 


How does a shared limit policy work?

A shared limit policy is issued in the name of your professional business or company. The policy provides professional liability insurance coverage for the business entity named on the certificate of insurance and any of the employees of the business entity, provided they are a ratable profession within our program. Coverage is also provided for locum tenens professionals with whom the business entity has contracted for services the locum tenens performs for the business entity.

The business, and all eligible employees and sub-contractors you regularly employ, will be considered when determining your practice’s premium calculation and share the same coverage limits you select for the business.


We have a shared limit policy. Are employees covered if they practice outside our office?

The policy covers your employees outside the office as long as they are performing covered professional services on behalf of your business.

If your employees are moonlighting, either for pay or as a volunteer, they should carry an individual professional liability insurance policy to cover those services. Otherwise, they might not be covered for claims that arise out of these activities.



There are plenty more where those came from.


See more FAQs

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