RN Insurance: Protecting Your Career and Financial Future

As a registered nurse, you work hard to provide quality care to patients. But what happens when something goes wrong? Mistakes can happen, and one error can result in a lawsuit that can potentially bankrupt you. This is where RN insurance comes in. In this article, we will discuss what RN insurance is, why it is important, and how to choose the best policy for your needs.

What is RN Insurance?

RN insurance, also known as nurse liability insurance, is a type of professional liability insurance that protects registered nurses against possible lawsuits. These lawsuits can arise from a mistake or alleged mistake made while performing nursing duties.

What Does RN Insurance Cover?

RN insurance typically covers legal defense costs, settlements or judgments against a nurse, and damages awarded to the plaintiff. Depending on the policy, RN insurance can also cover defense costs for investigations by boards of nursing, HIPAA violations, and other regulatory actions.

Why is RN Insurance Important?

RN insurance is important because it provides financial protection for nurses. Without insurance, legal defense costs and damages awarded to a plaintiff can be financially devastating for a nurse. Additionally, most employers’ liability insurance policies do not provide sufficient coverage for nurses, leaving them exposed to potential lawsuits.

Types of RN Insurance Policies

There are two main types of RN insurance policies: occurrence-based and claims-made.

Occurrence-Based Policies

Occurrence-based policies cover incidents that occur during the policy period, regardless of when the claim is filed. For example, if a nurse is sued for an incident that occurred during a policy period in 2021 but the lawsuit is not filed until 2023, the nurse will still be covered.

Claims-Made Policies

Claims-made policies cover incidents that occur and are reported during the policy period. If a nurse is sued for an incident that occurred during a policy period in 2021 but the lawsuit is not filed until 2023, the nurse will not be covered unless a retroactive endorsement is added to the policy.

How to Choose the Best RN Insurance Policy

When choosing an RN insurance policy, there are several factors to consider.

Coverage Limits

Make sure the policy provides adequate coverage limits. It is important to look at the amount of coverage provided for defense costs, settlements or judgments, and damages awarded to the plaintiff.

Premiums

Premiums can vary widely between policies. Make sure to compare premiums and coverage limits to get the best value for your money.

Policy Features

Look for policy features that will provide additional protection, such as coverage for HIPAA violations or regulatory actions.

Claims Handling Process

Find out about the claims handling process for the policy. Make sure the process is easy to understand and that the company has a good reputation for handling claims fairly.

FAQ

Do I need RN insurance if my employer provides coverage?

While some employers provide liability insurance for nurses, the coverage may not be sufficient. Additionally, employer-provided insurance may not cover incidents that occur outside of work or incidents that occur while working a second job.

What is the cost of RN insurance?

The cost of RN insurance varies depending on the policy and the amount of coverage selected. Premiums can range from $50 to $500 per year.

Can I purchase RN insurance after a lawsuit has been filed?

No, RN insurance must be purchased before a lawsuit is filed. It is important to have coverage in place before a mistake or alleged mistake occurs.

Conclusion

RN insurance is an important investment for registered nurses. It provides financial protection and peace of mind in case of a lawsuit. When choosing a policy, it is important to consider coverage limits, premiums, policy features, and the claims handling process. With the right policy in place, nurses can focus on providing quality care to their patients without worrying about the potential financial impact of a lawsuit.