Nurses and other allied healthcare providers generally seen as the agents of their employer and therefore not generally held directly liable for any lawsuits. Even when this is not the case lawyers would prefer to attack a deep pocketed hospital in court instead of a hard working nurse. Because of this, very few nurses are sued and insurance coverage is extremely affordable.
An individual nurse uses their policy in a few distinct circumstances.
- The allegations are so horrendous that the employer does everything possible to distance themselves from the caretaker.
- The employer goes bankrupt and the nurse is the only defendant, a real possibility in today’s economy and declining reimbursement environment.
- – The nurse is called before a licensing or disciplinary board to defend themselves, insurance will provide defense counsel for the insured.
When a nurse is self employed or an independent contractor the hospital, home healthcare or staffing agency has no legal reasonability to defend them. Because of this insurance is extremely important in these situations and generally costs three to five times what an employed nurse will pay.