Tuesday, April 3, 2012

A Quick Overview of Restrictions of Professional Indemnity Insurance For Nurses

Insurance companies providing professional indemnity insurance for healthcare professionals control the risks involved by identifying the limits of their coverage in the insurance policy. These limits set the parameters they use to ascertain whether an indemnity claim is legal. The insurer will not 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 company in the event a claim is filed.

Most limitations are stated clearly inside the contract. For instance, you can find policies that reveal the amount of money that may be claimed in order to cover the liability. Because court proceedings are integral to professional indemnity, policies also include provisions regarding a lawyer during investigations, questions from professional nursing association disciplinary bodies, official court enquiries, and other similar situations which have bearing on the claim.

Insurance coverage limitations should be made to fit the particular nursing field a nurse is in. The claims that an operating room nurse can face will be very distinctive from those that are for a nurse in pediatrics. A comprehensive policy can thus offer too much coverage in certain areas and too little 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". A number of policies covering professional indemnity insurance for nurses use this term in relation to covering particular claims even when the claim is made after the required period of time. They do so if the situation from which liability and indemnity arise is considered a prior known fact. This term implies that if the situation was something the insurer was officially informed of during the period of coverage, they might be able to cover claim. There are of course very particular clauses that define what can constitute as a prior known fact.

What exactly is advertised by a business as professional indemnity insurance for healthcare professionals may appear to fit the needs of a professional when handling the risks involved in working. However, it is the phrasing of the insurance policy that can determine whether this is indeed the case. Before agreeing to a policy, a careful study of its wording ought to be carried out in order to ensure that what is advertised suits what is needed.


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