Why NPs should carry their own malpractice insurance
According to the AANP, most employers provide claims-made coverage, which means a change in employment status can result in the loss of coverage. Employer-provided policies may not cover lost wages, off-duty incidents, or attorney's fees related to a lawsuit or licensing board hearing — and most employers do not provide disciplinary (license defense) coverage at all.
- Employer policies protect the facility first; an individual policy keeps your interests front and center.
- Proliability's employer-vs-individual comparison shows board complaints are "rarely" covered by employer policies vs. up to $100,000 individually, and HIPAA fines up to $50,000.
- Failure to diagnose and delay in diagnosis are among the most common claims made against clinicians (AANP).
Is employer coverage enough?
Often not. If your employer or its insurer covers you, most policies give the employer or insurer the right to settle your case — even if you would rather litigate.
Occurrence vs claims-made (per the AANP)
Occurrence policies cover a provider when a claim is filed during the time the policy is active, regardless of when the incident happened. Claims-made policies only cover incidents that were reported or occurred while you had that insurance.
Because most employer plans are claims-made, the AANP advises NPs negotiating a contract to confirm whether the employer will provide extended reporting period coverage (a "tail") to cover claims made after you leave or retire. Carriers like Proliability and CM&F offer occurrence coverage, which builds this protection in and avoids buying a separate tail.