Finding the best malpractice insurance for nurse practitioners is essential in today’s healthcare environment.
With nurse practitioners taking on broader responsibilities in patient care, the risks of malpractice claims and lawsuits are higher than ever. According to a Nurses Service Organization report, the average cost of a malpractice claim against a nurse practitioner is over $300,000, with legal defense expenses averaging an additional $65,000 per case.
Having the right malpractice coverage not only protects your career but also provides financial security for you and your family’s future.
What Is Malpractice Insurance for Nurse Practitioners?
Malpractice insurance, also called professional liability insurance or medical malpractice insurance is a type of policy designed to protect nursing professionals from the costs of a professional liability claim arising from their work.
A malpractice insurance policy helps cover legal fees, medical expenses incurred, lost wages, and other costs tied to a malpractice suit.
Whether you are working under an employer’s policy or carrying your own insurance, the goal of malpractice coverage is to provide protection if a patient care error, bodily injury, or covered incident leads to legal action.
Why Nurse Practitioners Need Malpractice Insurance
As nurse practitioners expand their scope of practice, prescribing medications, running their own practice, and serving as independent contractors, the need to carry malpractice insurance grows stronger.
Even if you’re covered under an employer’s coverage, that policy may not fully protect you in the event of a lawsuit. Without the right professional liability coverage, these expenses can put your financial security and even your retirement dreams at risk.
Having an individual professional liability policy ensures portable coverage that follows you if you change employers or work in multiple settings. It also provides peace of mind that you’re covered beyond the limits of your employer’s policy.
Types of Malpractice Insurance for NPs
Nurse practitioner malpractice insurance generally comes in two main forms:
- Claims-Made Policies: These provide coverage if the covered incident and the professional liability claim are both made during the policy period. Ending coverage without tail coverage can leave gaps.
- Occurrence Policies: These cover any covered claim that arises from professional services performed during the policy period, even if the claim is filed years later.
Both types of professional liability insurance policies are available as individual coverage or as part of an employer’s coverage, but most experts recommend that NPs maintain their own personal policy for complete protection.
Key Features to Look For in Malpractice Insurance
When evaluating the best malpractice insurance for nurse practitioners, keep these features in mind:
- Liability limits: Common coverage is $1 million per claim / $3 million aggregate.
- Legal defense: Coverage for legal fees, court costs, and settlements.
- Lost income protection: Reimbursement for lost wages or lost income during time away from work due to a claim.
- Licensing board defense: Coverage for licensing board actions or disciplinary hearings.
- Tail coverage: Extends protection for claims-made policies after the policy period ends.
- Coverage for professional services: Includes telehealth, first aid, and procedures within your scope of practice.
Some insurance companies also bundle life insurance, health insurance, or even home insurance discounted auto policies, giving NPs more personal insurance options to protect their family’s future.
How Medical Director Co. Helps NPs Navigate Risk
At Medical Director Co., we understand that malpractice insurance is just one part of staying protected. The right professional liability coverage works best when paired with proper compliance oversight and risk management.
- We help nurse practitioners strengthen compliance by connecting them with qualified medical directors who understand regulatory requirements.
- We support NPs in assessing risk areas, from prescribing practices to scope of services.
- We provide resources to align malpractice coverage with real-world practice needs, reducing legal liabilities and helping NPs stay protected.
Get matched with a medical director in 24 hours and lower your risk. Sign up today and get $200 off your first month.
Frequently Asked Questions
Do nurse practitioners really need their own malpractice insurance if their employer provides coverage?
Yes. While some employers offer a professional liability insurance policy, it may not fully cover you in every situation. Having your own personal policy ensures portable coverage that follows you if you change jobs, work part-time, or provide professional services outside your employer’s setting.
What is the difference between claims-made and occurrence policies?
A claims-made policy only covers you if the professional liability claim and the covered incident both occur during the policy period. An occurrence policy, on the other hand, covers any incident that happens while the policy is active, even if the claim is filed years later. Many NPs prefer occurrence coverage for its long-term protection.
How much does malpractice insurance usually cost for nurse practitioners?
The cost of nurse practitioner malpractice insurance varies by state, specialty, and practice setting. On average, premiums range between $500 and $2,000 per year. Independent contractors and those running their own practice often pay more, while those under employer’s coverage may pay less but still benefit from an individual professional liability policy for full security.
What does malpractice insurance actually cover?
A malpractice insurance policy typically covers legal fees, lost income, medical expenses incurred by patients, and settlements from a malpractice suit. Many policies also include coverage for licensing board actions, first aid expenses, and defense against allegations of professional negligence.
Does malpractice insurance protect me if I’m accused of prescribing outside my scope of practice?
Yes, most professional liability insurance policies will provide legal defense if a claim arises from alleged errors in prescribing or other professional services. However, insurers expect you to comply with state laws and regulatory requirements. Having a qualified medical director can help you stay compliant and avoid non-compliance risks.
Can malpractice insurance be bundled with other personal insurance options?
Some insurance companies offer more personal insurance options alongside malpractice coverage, including life insurance, health insurance, or even home insurance discounted auto policies. While these can provide added convenience, your priority should be ensuring you have the right malpractice coverage with appropriate liability limits.
Blaz Korosec is the CEO and co-founder of Medical Director Co., a nationwide platform that connects aesthetic and wellness professionals with licensed physicians for medical oversight, supervision, and compliance support. With a background that bridges healthcare operations, regulatory compliance, and entrepreneurial growth, Blaz has worked closely with hundreds of nurses, physician assistants, and clinic owners to help them legally launch and scale medical spas, telehealth weight loss clinics, IV hydration businesses, and aesthetic practices.
Blaz holds a degree in finance from Southern Methodist University (SMU) and has built a diverse portfolio of businesses ranging from healthcare to hospitality, including a national network of RV parks and medical clinics. Through MedicalDirector.CO, he’s developed a deep understanding of the state-by-state rules that govern collaborative agreements, PC/MSO structures, telemedicine protocols, and injectable treatments—translating complex legal frameworks into easy-to-implement solutions for clinicians and business owners.
Blaz is particularly passionate about helping nurses and mid-level providers unlock business ownership opportunities, and he’s known for designing systems that streamline operations, boost revenue, and ensure long-term legal protection. His team includes former prosecutors, senior RNs, and physicians who together support a growing number of clinics across all 50 states.
When he’s not working, Blaz enjoys mountain biking, restoring properties, and exploring the outdoors with his wife. He’s based in Texas but works with clients nationwide.
