Is Insurance For Nurses Worth It? Navigating Liability With a Risk Management Expert

Today’s blog post was inspired by a fantastic interview from the FreshRN Podcast, and it’s all about insurance for nurses and answering the question: is insurance for nurses worth it?

Who You’ll Hear

Kati Kleber, MSN RN– Nurse educator, former cardiac med-surg/stepdown and neurocritical care nurse, author, and speaker.

Common Situations Leading to Liability Claims

Jennifer sheds light on the types of claims nurses most often encounter, and spoiler alert—it’s not always the high-profile cases we hear about, like the RaDonda Vaught case. The most common claims for hospital nurses revolve around treatment and care errors, where something deviates from expected outcomes. These might include:

• Failure to escalate care appropriately after a patient’s condition changes.
• Missteps in medication administration, such as wrong dosages or contraindicated medications.
• Gaps in communication between team members or with patients.

Interestingly, Jennifer highlights how advancements like barcoding have reduced medication errors over the years. However, there’s been a slight uptick recently as workarounds and complacency creep into practice.

What Happens If You’re Named in a Lawsuit?

Being named in a liability lawsuit can feel overwhelming, and Jennifer breaks down the process to help nurses understand what to expect. Here are the basics:

1. Receiving Notification: Nurses are typically served legal paperwork, with a short timeline to respond.
2. Defense Process: Your attorney will craft a defense based on documentation of your care. This is why accurate and thorough charting is critical.
3. Statute of Limitations: Patients often have up to two years to file a claim, and cases can take several years to resolve.

The key takeaway? Good documentation is your best defense. Your notes should clearly reflect your actions, rationale, and adherence to standard protocols.

It is also critical to have good legal representation, even if you know you didn’t do anything wrong. Successfully navigating the legal system is extremely difficult, therefore having a lawyer is strongly advised.

The legal process can take months to years to unfold. The case may be settled out of court, or it may go to trial, depending on the circumstances.

Avoiding Common Documentation Pitfalls

Jennifer stresses avoiding documentation shortcuts like copying and pasting notes, as these can seriously damage your credibility during a lawsuit. Though these shortcuts might save time, they can lead to damaging inconsistencies—such as records showing you were in two places simultaneously. Today’s electronic medical records make it especially easy for plaintiffs’ attorneys to spot these discrepancies.

Her advice? Document in real-time whenever possible and ensure every entry is accurate. Any mismatch between your documentation and other evidence, like video surveillance, can severely undermine your defense.

Mitigating Risk as a Nurse

Reducing your liability risk doesn’t have to be complicated. Jennifer offers these practical tips:

• Know Your Scope of Practice: Regularly review your state’s nursing board guidelines and your facility’s policies.
• Stay Competent: Attend continuing education, conferences, and training to keep your skills sharp.
• Follow Policies and Procedures: Consistently adhere to safety protocols, and speak up if you notice gaps or unsafe practices.
• Maintain Professionalism: Remember that texts, emails, and even casual conversations could potentially be used as evidence. Keep communications respectful and professional.

What About the Board of Nursing?

Jennifer also explores the separate but equally important realm of nursing boards. While lawsuits focus on monetary damages, board investigations assess whether a nurse violated professional standards. These investigations can stem from:

• Patient complaints (even anonymous ones).
• Employer reports for policy violations, like breaches of confidentiality.
• Serious clinical errors or ethical lapses.

Board actions can range from requiring additional education to suspending or revoking a license. Even if you have nothing to hide, always consult an attorney experienced in nursing licensure before responding to the board.

Employer-Provided vs. Individual Insurance

A common misconception is that employer-provided insurance fully protects nurses. Jennifer clarifies that while it may cover malpractice claims, it often doesn’t extend to licensure defense or off-duty activities like volunteering. Having your own liability insurance provides an additional layer of security and ensures you’re fully represented in any legal matter.

Is Insurance For Nurses Worth It? Final Thoughts

This episode serves as a critical reminder to all nurses—whether you’re brand new or a seasoned pro—that liability insurance is a personal decision, and being proactive about protecting your license and practice is essential. Whether you decide to get additional coverage or not, understanding the risks and resources available to you is key.

A huge thank you to Jennifer Flynn for sharing her expertise and helping us navigate this complex topic. And to all my nurses out there, remember: documentation isn’t just a chore—it’s your first line of defense.

Watch the Interview: What Happens When Nurses Get Sued

Prefer to watch the video of this interview? Click play below 👇

Resources

1. RaDonda Vaught Trial – Part 2, Interview with Lorie Brown, RN MN JD
2. 5 Headline Making Stories of Nurses Losing Their License
3. Get Hired: 10 Rewarding Jobs for Nurses Without a License
4. Why patients sue — and how effective communication can help avoid a lawsuit
5. 5 Common Legal Issues in Nursing
6. Nurse Case Study: Alleged failure to appropriately resuscitate a PACU patient after a complex cosmetic surgery