Should Travel Nurses Purchase Professional Liability Insurance?
Travel nurses often ask if they need to purchase professional liability insurance. There is plenty of debate on this topic as it pertains to permanent employment, so travel nurses can be left wondering which side to believe. In this blog post, we’ll cover both sides of the debate, describe some of the unique considerations facing travel nurses, and provide some considerations for shopping liability insurance should you choose to obtain it.
The American Nurses Association conducted a poll in 2009 asking Registered Nurses if they owned their own professional liability insurance. Of the 311 respondents, 53% said no and 47% said yes. Why is it there is such a divide? There are several topics of debate to consider and each topic is just as applicable for travelers as it is for all nurses.
Are travel nurses already covered under their employer’s insurance?
Many who claim that travelers do not need their own liability insurance argue that travelers are already covered by their staffing agency’s insurance. I’ve seen this argument offered by some travel nurses in popular travel nursing forums. And recruiters will often tell their clients not to worry about liability insurance because the agency has them covered.
The vast majority of healthcare staffing agencies do indeed carry liability insurance for all of their clinical employees. In fact, the vast majority of healthcare facilities require that agencies provide proof of liability insurance as part of the credentialing requirements for each healthcare professional the agency sends to the facility. Facilities typically require policies to cover a minimum $1 million per occurrence, and $3 million annual aggregate. You’ll see this commonly referred to as $1 million/$3 million.
So if nurses are already covered, then why do they need to get their own insurance? Taralynn Mackay, a Registered Nurse and Lawyer specializing in representing healthcare professional’s undergoing board actions, points out that the employer’s coverage typically does not provide coverage when complaints are filed with a Board of Nursing against the nurse’s license. And George Indest, a Health Law Lawyer in Florida, contends that defending complaints against nursing licenses could cost as much as $75,000 or more.
Indest also asserts that the majority of complaints filed against nursing license are filed by the nurses’employers. In these cases, the nurse is often fired with cause. Therefore, the liability coverage no longer covers the nurse even if it included coverage for actions against a license.
Moreover, Taralynn Mackay asserts that employers sometimes sue Registered Nurses in an attempt to recoup damages from a lost lawsuit involving the nurse. In this case, the employer’s insurance will not cover the claims.
Will malpractice insurance increase the travel nurse’s chances of being sued?
Many who claim that travelers do not need their own liability insurance argue that having liability insurance increases the chances of being sued. They assert that lawyers go after all the deep pockets they can find when filing a lawsuit. So if lawyers find out that a nurse has insurance, then they’re sure to drag the nurse into the case. Moreover, employers who have lost lawsuits involving the nurse maybe more inclined to go after the nurse to recoup damages if the employer knows the nurse has their own liability insurance.
Some cite this risk as one of the main reasons they do not obtain their own liability insurance. We also found an interesting related story in the comments section of this blog post. An L&D traveler was named in a lawsuit along with a doctor, the hospital, and the staffing agency. She claims that the hospital’s lawyer told her that she would not have been named in the suit if she hadn’t had her own liability coverage.
Taralynn Mackay argues that having liability insurance does not make nurses targets for lawsuits. She points out that plaintiffs would not find out if the nurse has insurance until the discovery phase of the lawsuit which happens well after the lawsuit has been filed. Therefore, nurses who have their own liability insurance should not freely divulge the information to a plaintiff’s lawyers.
Of course, it can be argued that liability insurance could cause plaintiffs’ lawyers to keep nurses in a lawsuit. Perhaps they would drop the case against the nurse if they found out the nurse didn’t have liability insurance. However, Mackay argues that many lawyers these days will not drop charges if they think they can get anything at all from the nurse. After all, it’s all part of the same case so very little additional work need be conducted.
Special considerations for travel nurses regarding liability insurance
There are several special considerations for travel nurses regarding liability insurance. First, many feel that they’re the first to get thrown under the bus, or that there is a higher likelihood of getting thrown under the bus, when something goes wrong. If you feel this way then you might also feel that there is greater risk of being named in a lawsuit and/or having actions against your license.
Second, you’re often traveling from one location to the next. Your work can take you to remote locations. Moreover, you don’t get paid time off and you can’t really take temporary leaves of absence from your assignments. This all means that you could end up incurring significant expenses should you need to address actions against your license. For example, it’s possible that action is brought against your Florida license while you are on assignment in California.
Third, travel nurses routinely take time off between assignments. And you’re not covered by the agency’s policy while you’re not working. There are many scenarios that could arise during your time off that might warrant the need for liability insurance. For example, you may find yourself named in a good samaritan liability lawsuit.
Recommendations for travel nurses purchasing liability insurance
Travelers should keep these additional considerations in mind when deciding whether or not to secure their own liability insurance. Moreover, it’s important to note that the American Nurses Association recommends that all nurses secure their own liability insurance. Ultimately, the decision to secure liability insurance is up to each individual.
The cost of coverage for nursing liability insurance is quite reasonable. We obtained a quote from Nurses Service Organization for $99 per year for $1million/$3million in the state of California. However, this did not include the License Protection coverage extension. But Attorney George Indest claims that adding License Protection coverage will increase the cost by roughly $20 per year for $25,000 of coverage or more.
Many lawyers strongly recommend adding License Protection coverage. When purchasing License Protection policies, travel nurses should carefully review what the coverage includes. The policies may or may not include reimbursements for travel, food, lodging or lost wages. The coverage amounts can vary widely from policy to policy as well. And some policies let you choose your own lawyer while others do not.
According to Mackay, investigating a claim against a nurse’s license can run between $3,000 and $5,000. And it can cost $8,000 to $15,000 per day at the actual hearing. So make sure you purchase an adequate level of License Protection coverage.
It’s also important to consider whether the policy being purchased is an “occurrence” policy or a “claims-made” policy. Occurrence policies cover anything that occurs while the policy is in force. This means that if an incident occurred while the policy was in force, then you’re covered forever. A claims-made policy only covers claims that are brought while the policy is in force. So if a claim is made after the policy was cancelled, then you are not covered regardless of when the incident in question occurred. Also, you can typically purchase a “tail” policy for claims-made policies that will extend the coverage period.
Finally, it’s important to note that our research turned up at least one lawyer who argued that nurses should obtain liability insurance with equal or lower coverage limits than physicians in the state in question. Benjamin Newman asserts that plaintiff attorneys may shift their focus from physician negligence to nurse negligence if they find out the nurse has higher coverage limits. And since physician coverage limits vary from state to state, nurses should be aware and tailor their coverage accordingly.
As you can see, there are many variables to consider when deciding whether or not to obtain liability insurance. The vast majority of reputable sources we could find urge all nurses, and especially travel nurses, to obtain their own liability coverage. Of course, in the end the choice is up to each individual. We’d love to hear your about your experiences with this issue in the comments section below.
