Nurse Practitioner Liability Coverage
As I was reviewing our insurance coverage today I wondered how many NPs really understand the difference between types of professional liability coverage and why it matters. One can only practice to the best of both clinical and professional abilities and then hope to never be named in a suit. The following questions will guide you when examining your group's coverage, and are taken from the American Academy of Nurse Practitioners (AANP) Web site.
- Am I protected individually under the policy? (i.e., am I specifically named as an insured?)
- Does my insurance include license protection to help defend me in an administrative or disciplinary situation?
- If I leave my employer, will its policy cover me for an incident that occurred while I was still employed? (i.e., is my employer's policy "Occurrence"?)
- Do I have my own individual limits of liability?
- What level of coverage do I have?
- May I see the policy?
- Do I have coverage 24 hours a day?
- What is my employer's insurance company's stability rating?
The most common mistake I see is not clarifying whether coverage is "occurrence" or "claims made." Occurrence coverage affords protection to the insured against any event described in the policy that occurred during the policy period, regardless of how long after expiration of the policy period the claim may arise.
Under a claims-made policy, the event that triggers the insurer's duty is the reporting of a claim within the policy period arising from an occurrence within the same policy period. While the cost of a claims-made policy is often less, enabling the professional to carry some type of protection, the coverage is also less, since the annual payment bought protection for only 1 year, not for eternity.
What should you look for if your employer-to-be has a claims-made policy? The key question is to determine who covers the tail coverage if you leave or if the practice closes and what the associated costs are. If you do have a claims-made policy without tail coverage don't forget to ask your new employer about prior-acts coverage. It either includes the retroactive date established under the earlier policy, or provides coverage for claims arising out of prior acts without any specific time limitation in the past. The latter coverage is commonly referred to as "full prior acts" coverage. Determining how well (or not) you are covered is one part of interview you don't want to forget!
Lynn Schiff, NP, is the owner of Advanced Practice Solutions, a recruiting firm specializing in permanent and temporary nurse practitioner placements. http://www.advancedpracticesolutions.com