Reporting
One of the most important responsibilities to uphold is reporting. Insurance companies require the nurse to inform them of incidents which may result in an indemnity claim. Some claims may be made after a policy expires and fall under the insurance policy’s run-off coverage. Not informing the insurer of these incidents can be grounds for coverage to be declined. During a claim, the nurse insured must assist the insurer by immediately reporting anything that may have a bearing on the claim. This will help guide the strategy or legal course of action, which may lead to a favourable outcome. It is also the duty of the policyholder to notify the insurer of any change in his or her employment status. These include changes of address, retirement status, and working hours.
Excess
A professional indemnity policy may include an excess, which is a threshold below which claims are not covered. The nurse herself must shoulder the expenses that do not meet the excess. Usually, lower-priced premiums come with a higher excess; so in the event a claim is made, the nurse will have a larger share of the cost than if she had chosen a policy with a lower excess.
One very important aspect of excess is the costs of legal defence. There are insurance policies in which legal expenses are considered a part of the excess, or defence cost-inclusive. This means that a portion of the legal expenses will be covered by the nurse, whether the lawsuit is won or lost. In the event of a loss, this cost is deducted first from the amount the insurance company will pay. The rest will then be used to cover the damage claim. If the case is won, what is not covered by the insurance or the employer will be paid by the nurse. If an excess is defence cost-exclusive, all legal expenses will be handled by the insurer.
Professional indemnity insurance for nurses helps mitigate the risks involved in the practice of the profession. Once a policy is taken out, a clear understanding of what is required of the policyholder may aid in winning lawsuits, keeping costs down, and justifying run-off coverage.