Overview of Limitations of Professional Indemnity Insurance For Nurse Practitioners

Insurance companies offering professional indemnity insurance for nurse practitioners control the risks involved by defining the limits of their coverage in the insurance policy. These limits set the parameters they use to determine whether an indemnity claim is applicable. The insurer is not going to cover claims that fall beyond these limitations. Careful scrutiny of this part of the insurance policy is essential in order to become aware what might be expected of an insurance provider in the event a claim is created.

Most limitations are stated clearly within the contract. For instance, there are policies that indicate the amount of money that may be claimed in order to cover a liability. Because court proceedings are essential to professional indemnity, policies also contain provisions regarding an attorney during investigations, questions from professional nursing association disciplinary bodies, established court enquiries, as well as other similar situations which have bearing on the claim.

Insurance limitations should be made to fit the particular nursing field a nurse is in. The claims that an operating room nurse may face will be very different from those that are for a nurse in pediatrics. A comprehensive coverage can thus supply too much coverage in certain areas and inadequate coverage in others.

Some restrictions, however, are embedded in the definition of the terms being used. A good instance of this is the term “prior known fact”. Most policies covering professional indemnity insurance for nurses use this term in relation to covering particular claims even if the claim is made after the required period of time. They do so if the scenario from which liability and indemnity arise is considered a prior known fact. This phrase implies that if the scenario was something the insurer was officially informed of during the period of coverage, they might be in a position to cover claim. There are of course very particular clauses that define what will constitute as a prior known fact.

What exactly is advertised by a company as professional indemnity insurance for nurse practitioners may appear to fit the needs of a professional when handling the risks involved in working. However, it is the wording of the insurance policy that will determine whether this is certainly the case. Before agreeing to some policy, a review of its wording ought to be carried out in order to make certain that what is advertised fits what is needed.

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