Nurses

FAQs for Nurses

Why do nurses need insurance?

Protecting professional practice:
Nurses face various risks in their professional practice, including the potential for claims of negligence or malpractice. Professional indemnity insurance (PII) provides financial protection against such claims, covering legal costs and any compensation awarded. This ensures that nurses can continue their practice without the fear of financial ruin due to unexpected legal issues.

For nurses who work for a medical facility, staff may be covered under the organisation's insurance policy. You should always check with your employer to be sure. For nurses who work as independent contractors, a private insurance policy will be needed.

Meeting legal requirements with Ahpra:
The Australian Health Practitioner Regulation Agency (Ahpra) mandates that nurses have appropriate PII arrangements as part of their registration standards. This requirement is in place to protect both the nurse and the public, ensuring that any professional indemnity, public liability and product liability is adequately covered. Compliance with Aphra’s standards is essential for maintaining registration and the ability to practice legally.

What is the difference between professional indemnity insurance, public liability and product liability insurance for a nurse?

Professional Indemnity Insurance (PII):
Professional indemnity insurance protects nurses from legal claims arising from their professional duties. It covers claims of negligence, malpractice, errors, or omissions that result in harm to patients. This includes legal defence costs, and any compensation awarded. Nurses are legally required to have this insurance as part of their registration with Ahpra to protect their practice and patients.

Public Liability Insurance:
Public liability insurance covers nurses in case a third party, such as a patient or visitor, is injured or their property is damaged as a result of the nurse's activities or negligence. This could include situations like a patient slipping and falling in a healthcare facility or home environment. Public liability insurance provides coverage for legal costs and compensation related to such incidents.

Product Liability Insurance:
Product liability insurance applies to claims arising from the use of defective or harmful products, such as medical equipment or supplies used by nurses. For example, if a nurse uses a faulty thermometer or contaminated wound dressings that cause harm to a patient, product liability insurance protects the nurse from being held personally responsible. In most cases, this insurance is held by the product manufacturer, but it's relevant if the nurse is seen as responsible for using the product.

At Guild Insurance we offer combined insurance with professional indemnity insurance, public liability insurance and product liability insurance together in one policy.

How to choose the right insurance for nurses?

Assessing coverage needs:
Choosing the right insurance involves evaluating the specific risks and requirements of your professional practice. Consider the following steps:

Evaluate professional risks: Identify the potential risks associated with your practice, including the likelihood of legal claims arising from negligence or errors.
Understand legal and regulatory requirements: Ensure that your insurance meets the standards set by Ahpra and other relevant regulatory bodies. This includes verifying that the policy covers all necessary aspects of your professional duties.
Compare insurance providers: Look for insurers that specialize in professional indemnity insurance for healthcare professionals. Compare policies to find one that offers comprehensive coverage at a reasonable cost.
Consult with a specialist: If you are unsure of the cover you require, please contact us at 1800 810 213 to speak to an insurance specialist.

By thoroughly assessing your coverage needs and understanding the requirements of your profession, you can choose an insurance policy that provides adequate protection and peace of mind.

What's the difference between professional indemnity and business insurance?

Professional indemnity insurance covers you for your civil liability when a claim arises from a breach of your professional duty. Guild combines Professional Indemnity, Public Liability and Product Liability in one policy.

Business insurance is designed to protect business risk, for example, if you ran your own practice and required cover for contents, liability or business interruption cover.

You may have an Australian Business Number (ABN) for your contract work as a nurse. However, be sure to understand whether you need insurance as a professional to cover your professional duties as a nurse or as a business entity.

How does the professional indemnity insurance arrangements registration standard apply to self-employed nurses?

It is essential for self-employed nurses to have their own professional indemnity insurance arrangements. These can be obtained through professional bodies, trade unions, or defence organizations, which may offer professional indemnity insurance cover as part of their membership or for an additional fee. Alternatively, self-employed nurses can arrange their own coverage directly through an insurer or an insurance broker.

What is Good Samaritan cover for nurses?

Good Samaritan cover for nurses provides protection for actions they take in emergency situations where they provide assistance voluntarily, outside of their regular professional duties. This type of cover ensures that nurses are insured against claims of negligence while offering help in emergencies, even when they are not officially on duty.

Is malpractice for nurses covered by indemnity insurance?

Yes, malpractice for nurses is covered by professional indemnity insurance. This insurance protects nurses against legal claims resulting from alleged errors, omissions, or negligent acts in the course of their professional duties. It covers the costs of legal defence, and any damages awarded, ensuring that nurses are protected from financial loss due to malpractice claims.

How can I comply with the professional indemnity insurance arrangements registration standard?

As a nurse, you must meet the NMBA’s registration standards, which include having appropriate professional indemnity insurance arrangements when practising your profession. Ensure that your professional indemnity insurance arrangements provide adequate and suitable coverage for all aspects of your practice. The NMBA’s registration standard requires enrolled nurses, registered nurses, and nurse practitioners with their own insurance to retain proof and present it to the NMBA if requested.

Professional indemnity insurance arrangements can be obtained through:
• Your private or public sector employer
• Membership in a professional body, trade union, or defence organization
• Directly from an insurer or via an insurance broker
• A combination of the above

If I am employed as a nurse, how does the professional indemnity insurance arrangements registration standard apply?

If you only work for an employer, you’re likely covered under their professional indemnity insurance. However, confirm the scope and details of coverage with your employer as policies can differ.

What should my professional indemnity insurance arrangements be if I have both employed and self-employed roles?

You must have separate insurance for your self-employed work. Volunteer and unpaid roles may also require coverage. Check if your current arrangements include voluntary activities or secure additional cover.

What are the professional indemnity insurance requirements if I hold non-practising registration?

If you’re not practising during a registration period, insurance isn’t required for that time. However, when ceasing practice, you must obtain run-off cover for potential claims arising from past services.

What does ‘amount of cover’ mean?

The ‘amount of cover’ refers to the financial limit of your policy. It must be adequate for your practice’s risks, area of work, client base, and professional history. It ensures compensation in case of claims.

What does ‘run-off cover’ mean?

Run-off cover protects you after you stop practising. If your policy is ‘claims made’, it only covers claims during the policy period. Run-off cover extends protection for claims made after retirement or ceasing work. ‘Occurrence-based’ policies don’t require run-off cover.

What is the requirement for automatic reinstatement?

Automatic reinstatement means your policy resets the insured amount for separate, unrelated claims once the limit is reached. This prevents you from being left without cover after a large claim. It is required by the NMBA’s registration standard.

What is my duty of disclosure?

You must disclose any information that may influence an insurer’s decision to offer or maintain your cover. This applies to both contractual and non-contractual indemnity arrangements. Failing to do so could affect your coverage or lead to denial of claims.

Is it my responsibility to ensure that my professional indemnity insurance arrangements are in place?

Yes. As a nurse, you are responsible for ensuring that you have appropriate cover when practising. You must declare this when registering or renewing with the NMBA. They may request evidence at any time, especially during an audit or if concerns are raised.

What should I do if my practice changes?

If your role or area of practice changes, make sure your professional indemnity insurance still covers you adequately. This includes focusing on a new specialty, taking on new roles, or working in different settings. For support, contact us on 1800 810 213.