What it is
You will see it called several things: medical malpractice insurance, nursing malpractice insurance, or errors and omissions insurance.
Why nurses carry it
Carry your own policy even if your facility covers you. When a claim hits, the facility protects itself first, and its coverage for you can be limited, leaving you on the hook for the rest. That is when your personal policy kicks in. Nurses on the floor have a blunt name for getting left exposed: thrown under the bus.
A personal policy typically covers medical negligence, HIPAA violations involving patient records, misrepresentation, and incorrect advice. It also pays legal fees (defense, judgments, settlements) and reimburses lost income from time spent at trials or depositions.
The downsides come down to cost, plus limited coverage, dense policy language, and potential gaps between coverage dates. If it does not fit your budget or you already carry other malpractice coverage, you may decide to skip it.
Why nurses get sued
Negligence that harms or kills a patient is the big one, along with allegations about the care a nurse or the team provided. Some states let patients sue for up to 10 years. Other common triggers are medication errors, unprofessional conduct, failure to act, and injury.
Types of coverage
You will choose between two basic structures, so research which fits you.
Claims-made coverage pays for claims filed during your policy period. You can add a retroactive date (which covers an incident that happened before your policy started but is claimed during it) and an extended-reporting period (which covers claims for a window after your policy ends, usually 30 to 90 days).
Occurrence-based coverage covers any incident that happened during your policy period no matter when the claim is filed. It costs more because the protection stays active for so long.
You can also stack on other policies. Workers' compensation covers work-related injuries and followup care like physical therapy. Commercial property insurance protects your home, office, and medical equipment if you run your own nursing business.
Picking the right policy
Do your homework. Ask other nurses which policies they hold and how satisfied they are. Most insurers will give you a quote and let you buy online or over the phone.
According to the NSO and CNA report, high-cost cases are real: claims of $750,000 or more made up 7.9% of closed claims. Your own monthly or annual premium varies by company and state. And do not assume seniority protects you, since the report shows claim severity has climbed over time. Think of personal liability insurance as something you buy, forget about, and remember to renew before it expires.
Frequently Asked Questions
Do I really need my own malpractice insurance if my employer covers me? It is worth considering. When a claim hits, your facility protects itself first, and its coverage for you can be limited. A personal policy is built to cover you specifically.
How much does a nurse malpractice claim cost on average? The NSO and CNA 5th Edition report puts the average paid claim at $236,749 for claims closed from 2020 through 2024, up 12.5% from the prior report. Claims of $750,000 or more made up 7.9% of closed claims.
What does a personal liability policy actually cover? Typically medical negligence, HIPAA violations involving patient records, misrepresentation, and incorrect advice. It also pays legal defense, judgments, and settlements, and reimburses income lost to trial or deposition time.
What is the difference between claims-made and occurrence-based coverage? Claims-made coverage pays for claims filed while the policy is active, often with an added retroactive date and extended-reporting window. Occurrence-based coverage covers any incident that happened during the policy period no matter when the claim is filed, and it usually costs more.
Are experienced nurses safer from lawsuits? Not necessarily. Seniority is not protection, and overall claim severity has been rising, so weigh coverage on your actual exposure rather than years on the job.
Bottom line
Personal liability insurance protects you financially if a patient or their family sues. Nurses most often get sued over negligence that harmed or killed a patient. To pick the right coverage, research your options and ask other nurses what works for them.