Which malpractice insurance statement requires correction?

• A. Most private insurance policies for nurses are primary policies that begin before hospital coverage has been exhausted.
• B. Most private insurance policies for nurses are excess policies that begin covering the nurse only after the hospital's insurance coverage has been exhausted.
• C. Malpractice insurance provides a defense when a nurse is in a lawsuit involving professional negligence or medical malpractice.
• D. If both the employing institution and the nurse are sued in a professional liability case, the nurse must notify his or her private insurance carrier of the lawsuit.

Answer: (B)

The idea to focus on is how coverage coordinates between the employer’s policy and a nurse’s private Malpractice policy. In most situations, the hospital’s professional liability insurance serves as the primary coverage for acts that occur in the course of employment, with the nurse’s private policy stepping in as excess protection to provide additional limits and defend costs after the employer’s policy has paid or when limits are reached.

The statement that most private insurance policies for nurses are excess policies that begin covering only after the hospital’s coverage is exhausted is not universally accurate. While private policies can be coordinated as excess in some cases, many nurses also carry private policies that function as primary or coordinate in other ways, and the exact structure depends on the specific policy and employer arrangement. Therefore that statement is the one that generally requires correction.

Malpractice insurance does provide a defense when a nurse is sued for professional negligence or medical malpractice, and when both the employing institution and the nurse are sued, the nurse should notify the private insurer (in addition to the employer) so defense can be coordinated and coverage clarified.