Do nurses need malpractice insurance?
This guide explains what malpractice insurance is, whether nurses are legally required to carry it, what employer coverage actually includes, and when having your own policy can protect your career, finances, and professional license.
What Is Malpractice Insurance for Nurses?
Malpractice insurance (also called professional liability insurance) protects nurses if they are accused of negligence, errors, or omissions while performing their professional duties.
A typical policy may cover:
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Legal defense costs
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Settlements or court judgments
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Licensing board defense
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Claims related to patient injury or harm
Even when a claim has no merit, legal defense alone can be financially devastating without coverage.
Are Nurses Legally Required to Have Malpractice Insurance?
In most cases, nurses are not legally required by law to carry individual malpractice insurance. However, that does not mean they are fully protected without it.
Key points to understand:
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Hospitals and healthcare facilities usually carry insurance to protect the organization
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Employer coverage prioritizes the employer, not the nurse
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Nurses can still be named individually in lawsuits
Some states, specialties, or contract roles may strongly recommend or require individual coverage, particularly for independent or agency nurses.
Does Employer-Provided Insurance Fully Protect Nurses?
Many nurses assume their employer's insurance is enough. This is one of the most common—and risky—misunderstandings.
Limitations of Employer Coverage
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The policy protects the hospital first
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Coverage may not extend to actions outside assigned duties
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You may not receive separate legal representation
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Coverage can disappear if you change jobs or are terminated
If a conflict arises between the employer and the nurse, the nurse's interests may not be the priority.
Common Situations Where Nurses Are Sued
Nurses can face claims in a wide range of scenarios, including:
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Medication administration errors
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Failure to monitor or report changes in patient condition
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Documentation mistakes
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Scope-of-practice disputes
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Patient falls or injuries
Even highly skilled and experienced nurses can face legal action due to system errors or unclear protocols.
Which Nurses Are Most at Risk?
While all nurses face some level of exposure, certain roles carry higher legal risk.
Higher-risk nursing roles include:
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Registered nurses in acute care settings
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Nurse practitioners
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Travel and agency nurses
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Home health nurses
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Independent contractors
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Nurses in supervisory or leadership positions
If you work without direct supervision or make clinical decisions independently, personal coverage becomes especially important.
How Malpractice Insurance Protects Your Nursing License
Legal claims don't just threaten finances—they can threaten your ability to practice.
Many individual policies include:
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Legal representation for board investigations
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Coverage for license defense hearings
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Protection during disciplinary proceedings
Employer insurance often does not cover licensing board actions, which can occur even if no lawsuit is filed.
How Much Does Malpractice Insurance Cost for Nurses?
One of the biggest misconceptions is that malpractice insurance is expensive. In reality, individual policies are typically affordable.
Costs vary based on:
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Nursing role and specialty
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Level of responsibility
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Coverage limits
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Location
For many nurses, annual premiums are often less than the cost of one month of professional dues or continuing education.
What to Look for in a Nursing Malpractice Policy
When comparing policies, key features to evaluate include:
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Coverage limits per claim and per year
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License defense coverage
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Coverage for legal defense costs
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Coverage for incidents outside your primary employer
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Occurrence-based vs claims-made policies
Understanding these details ensures the policy actually protects you when it matters.
Common Myths About Nursing Malpractice Insurance
"Having insurance makes me more likely to be sued"
There is no evidence that individual coverage increases lawsuit risk. Claims are typically driven by patient outcomes, not insurance status.
"My employer will always protect me"
Employers protect themselves first. If interests conflict, your protection may be limited.
"Only nurses who make mistakes get sued"
Many claims involve system failures, unclear orders, or documentation issues—often unrelated to skill or intent.
Is Malpractice Insurance Worth It for Nurses?
For most nurses, the answer is yes.
Malpractice insurance provides:
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Financial protection
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Legal representation
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Peace of mind
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Career and license security
Given the relatively low cost compared to potential legal exposure, many nurses view it as an essential part of professional risk management.
Final Verdict: Should Nurses Carry Their Own Malpractice Insurance?
While not always legally required, having individual malpractice insurance is a smart and proactive decision for most nurses. Healthcare litigation is complex, and even unfounded claims can have serious financial and professional consequences.
Personal coverage ensures that your interests—not just your employer's—are protected, giving you confidence to practice safely and responsibly.
Key Takeaways
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Nurses can be sued individually, even when employed
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Employer insurance has limitations
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Individual policies are affordable and comprehensive
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License defense coverage is a major advantage
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Malpractice insurance protects both finances and career
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