The Pros And Cons Of Professional Liability Insurance

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Many professions require their members to carry basic liability insurance coverage. Anyone from a contractor, mechanic, and even construction worker is in a position to potentially need this type of coverage. Basic liability insurance provides a layer of protection that normally covers an individual for personal, bodily and property damage in the case of flawed workmanship (Joel, 2013). Beyond this basic coverage is professional liability coverage. Professional liability insurance or professional indemnity insurance is highly recommended for specific professions where individuals are often working in a capacity where an error or lapse in judgment may lead to significant harm of another. These policies go beyond basic coverage to accept the risk for negligence or inadequate services. Lawyers, doctors, and other healthcare providers, such as advanced practice nurses (APNs) are examples of individuals who require this type of insurance. All professionals can be legally required to reimburse clients when negligence occurs and having a suitable indemnity policy in place can save you time, money and stress if you are sued (Joel, 2013). Often entry-level APNs believe that coverage provided by their employer is adequate. In worst-case scenarios, this could prove to be a severe lapse in judgment. Employer provided policies are just that, employer policies. In a malpractice case, the attorney’s focus would be on the best interests of the employer, not necessarily the individual employee (ANA, 2014). Personal professional liability policies should be the preferred choice of APNs (ANA, 2014). Although, depending on the situation, the potential payout from an individual APNs liability policy is often viewed as enticement enough to lead to their inclusion in legal proceedings. Nevertheless, this potentiality should not be sufficient to sway the desire for and understanding of need for personal coverage (WOCN Society National Public Policy Committee, 2012). Coverage levels and types of coverage should be fully evaluated, with the level and needs reassessed annually. There are two predominate types of professional liability coverage. Policies that are time specific, meaning you are covered while your policy is in effect, are known as claims-made coverage. Policies that are situation specific, and provide coverage for events at any point in time, are known as occurrence policies. The later would be the optimal coverage, as individuals may not come forward with issues or complaints seeking regress until years after an occurrence (Joel, 2013). Additionally, the costs of liability coverage must be evaluated. Costs for this coverage can vary widely from state to state and specialty area of practice. Those individuals working in areas such as Labor and Deliver and emergency departments, often face exorbitantly high insurance rates based on the level of risk they are exposed to on a daily basis (ANA, 2014). Poor outcomes, regardless of the root cause, are stressful. Distraught patients want someone to accept the blame, and many sympathetic juries provide astronomical awards for care, suffering, and lost quality of life (Emergency Nurses Association, 2012). For APNs in our country, it is not necessarily a choice of whether you will have a professional liability policy, but rather what type of liability policy it will be. …show more content…
In all 50 states, it is a requirement for medical professionals such as APNs to carry liability insurance. This requirement is linked your licensure and approval is not granted without proof of coverage and attestation of the intent to remain insured (Nebraska Department of Health and Human Serives, 2014) (State of Connecticut, 2014). In all situations, the best offense is a prepared defense. APNs must be aware of the limitations of their practice and be willing to admit the need for consulting services when an unfamiliar case presents. It is imperative that APNs are always aware of their legal scope of practice, as this can vary from state to state. Becoming politically involved at the local and state level will provide opportunities to address inconsistencies in our profession and will allow practitioners to lend their voice to efforts calling for federally standardize practice regulations (Citizen Advocacy Center, 2014). In the provided scenario “Anyone Can be Sued,” it should be noted that the APN acted as a knowledgeable and prudent healthcare professional. In all 50 states, individuals who work closely with children, such as teachers and healthcare professionals, are required to report, “suspected abusive situations,” (US Department of Health

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