The bottom line: Every nurse should have their own malpractice insurance policy. It costs $80-250/year for most staff RNs ($100-500 for NPs/CRNAs) and provides coverage that your hospital policy does not: individual defense if you are named personally in a lawsuit, license defense (BON investigations), deposition representation, and coverage for side work (PRN, telehealth, volunteer, family care). Hospital policies protect the hospital first, not you. If there is a conflict of interest (e.g., the hospital blames you for an adverse event), their lawyers will not represent your interests. Get your own policy today. NSO and Proliability are the two most popular nurse-specific providers.
2026 Malpractice insurance costs for nurses
| Nurse Type | Annual Premium (NSO) | Annual Premium (Proliability) | Coverage Limit |
|---|---|---|---|
| Staff RN (bedside) | $80-150 | $90-170 | $1M/$6M |
| Charge nurse / manager | $120-200 | $130-220 | $1M/$6M |
| Nurse practitioner (NP) | $150-400 | $180-450 | $1M/$6M |
| CRNA | $300-700 | $350-800 | $1M/$6M |
| Nurse midwife (CNM) | $200-500 | $250-550 | $1M/$6M |
| Nurse educator / researcher | $100-200 | $110-220 | $1M/$6M |
| Travel nurse | $150-300 | $170-320 | $1M/$6M |
| Student nurse (clinicals) | $30-50 | $35-55 | $1M/$6M |
Prices vary by state (some states have higher medical malpractice costs due to more lawsuits), specialty (CRNAs and nurse midwives pay more due to higher-risk procedures), and coverage limits. The standard $1M per occurrence / $6M aggregate is sufficient for most nurses.
What your hospital policy does NOT cover
This is the critical question. Your hospital has a malpractice insurance policy that covers you while you are working within the scope of your employment. But there are significant gaps:
| Situation | Hospital Policy? | Your Own Policy? |
|---|---|---|
| You are sued individually (named in lawsuit alongside hospital) | Maybe—hospital lawyer represents hospital, not you | Yes—your own lawyer represents YOU |
| Conflict of interest (hospital blames you) | No—hospital lawyer will not protect you | Yes—your lawyer works for you only |
| Board of Nursing (BON) investigation / license defense | No—hospital does not defend your license | Yes—up to $25K-50K for license defense |
| PRN work at another facility | No—only covers your primary employer | Yes—covers you anywhere, any facility |
| Telehealth / side gig work | No | Yes—if disclosed to insurer |
| Volunteer work (free clinics, health fairs) | No | Yes—usually covered |
| Good Samaritan care (off duty) | No | Yes—usually covered |
| Deposition testimony (you are a witness) | Maybe | Yes—covers deposition representation |
| Criminal defense (related to patient care) | No | Some policies—check for criminal defense coverage |
The conflict of interest scenario: This is the #1 reason to have your own policy. Imagine: a patient has an adverse outcome (e.g., falls and breaks a hip, or gets the wrong medication). The patient sues the hospital AND you personally. The hospital lawyer says: "The nurse failed to follow protocol." The hospital throws you under the bus to protect itself. Their lawyer is NOT your lawyer—they represent the hospital, and if there is a conflict, they will choose the hospital every time. With your own policy, you have your own lawyer who works for YOU and only YOU. This can be the difference between keeping your license and losing it, or between paying nothing and paying a settlement out of pocket.
Occurrence vs. claims-made policies
| Feature | Occurrence Policy | Claims-Made Policy |
|---|---|---|
| How it works | Covers any incident that occurred during the policy period, regardless of when the claim is filed | Covers claims filed during the policy period, for incidents that occurred after the retroactive date |
| Premium cost | Higher initial premium | Lower initial premium, increases over time |
| Tail coverage needed? | No—coverage stays with you forever after the policy period | Yes—if you switch insurers or stop coverage, you need tail coverage (costs 150-300% of annual premium) |
| Portability | Fully portable—coverage follows you | Portable only if you keep the same insurer or buy tail |
| Best for | Nurses who want simplicity and permanent coverage | Nurses who want lower initial cost and plan to stay with one insurer |
| NSO default | Occurrence | — |
| Proliability default | Occurrence | — |
Always choose occurrence if available: Occurrence policies are almost always better for nurses. The premium is slightly higher, but you never have to worry about tail coverage. If you leave nursing, switch insurers, or retire, your occurrence policy still covers any claim from incidents that happened during the policy period—forever. With a claims-made policy, if you forget to buy tail coverage when you switch or retire, you are uninsured for past incidents. Most nurse-specific policies (NSO, Proliability) default to occurrence, which is what you want.
What to look for in a policy
- Occurrence form (not claims-made) — as discussed above.
- $1M per occurrence / $6M aggregate limits — this is the standard and sufficient for most nurses. CRNAs and NPs may want $2M/$4M or higher.
- License defense coverage — at least $25K, preferably $50K. This covers legal fees if the Board of Nursing investigates you. This is the most commonly used coverage—more nurses face BON investigations than malpractice lawsuits.
- Defense costs outside the limits — legal fees should not reduce your $1M coverage limit. Some cheaper policies include defense costs within the limit, which means if legal fees are $300K, you only have $700K left for a settlement.
- Deposition representation — covers you if you are called to testify in a deposition (even as a witness, not a defendant).
- Personal liability (bodily injury/property damage) — some policies include this as a bonus, covering you if someone slips and falls at your home, etc.
- Information privacy coverage (HIPAA) — some policies cover defense costs if you are accused of a HIPAA violation.
- Assault and battery defense — covers you if a patient or family member accuses you of assault (e.g., restraining a confused patient).
Top malpractice insurance providers for nurses
| Provider | Best For | Starting Price (RN) | Notes |
|---|---|---|---|
| NSO (Nurses Service Organization) | Most popular, all nurse types | $80/year | Aon-affiliated; occurrence form; includes license defense; covers all nursing specialties |
| Proliability (Mercer) | Second most popular | $90/year | Occurrence form; good customer service; covers all nursing specialties |
| CM&F Group | NPs, CRNAs, advanced practice | $100/year | Specializes in healthcare providers; good for advanced practice nurses |
| Healthcare Providers Service Organization (HPSO) | Allied health, some nurses | $85/year | Similar to NSO; good for multi-license holders |
| State nurses association | Membership benefit | Included or discounted | Many state nurses associations offer discounted malpractice insurance as a membership benefit |
Do NOT rely on your state nurses association policy alone: Many state nurses associations offer malpractice insurance as a membership benefit, but these policies often have lower limits, may be claims-made, and may not include license defense. If you use your association policy, read the fine print carefully. It may be fine as a secondary policy, but consider getting your own NSO or Proliability policy as primary. Also, if you let your association membership lapse, your coverage lapses too.
Common misconceptions
- "My hospital covers me, so I do not need my own policy." False. As discussed, hospital policies protect the hospital, not you. If there is a conflict of interest, you are on your own. And hospital policies do not cover PRN, telehealth, volunteer, or off-duty work.
- "Malpractice insurance is expensive." False. For most staff RNs, it costs $80-150/year—less than $15/month. That is cheaper than most streaming services. For the financial protection it provides, it is the best value in insurance.
- "Nurses never get sued individually." False. While hospitals are sued more often than individual nurses, nurses ARE named in lawsuits, especially in cases involving medication errors, falls, missed assessments, and communication failures. And even if you are not sued, BON investigations are common and can be costly to defend.
- "If I have my own policy, it makes me more of a target for lawsuits." False. This is a persistent myth. Plaintiff attorneys do not check whether you have malpractice insurance before naming you in a lawsuit. And having your own policy means you have a lawyer who will fight for you, which actually makes you a less attractive target (lawyers prefer defendants who are easy to settle with).
- "I am a good nurse, so I will never need malpractice insurance." False. Good nurses get sued and investigated all the time. Malpractice is not about whether you are a good nurse—it is about whether a patient or family member believes you caused harm, and whether the legal system agrees. Even if you are completely exonerated, legal defense costs can be $50K-200K. Your policy covers those costs.
The bottom line: Malpractice insurance for nurses is one of the most underrated financial protections available. For $80-150/year (less than $15/month), you get: a lawyer who represents YOU (not the hospital), license defense for BON investigations, coverage for PRN/telehealth/volunteer work, deposition representation, and peace of mind. The alternative—going without coverage—means if you are sued or investigated, you could be paying $50K-200K in legal fees out of pocket, or worse, losing your nursing license. Every nurse should have their own policy. Go to NSO or Proliability today, get a quote (it takes 5 minutes), and buy a policy. This is not optional—it is essential financial protection for your nursing career.