Indemnification of Nurses

hhaynal

You will recall our site is mfg ops. We have a nurse practitioner on site. Our ins dept says nurse liability is covered by the indemnification clause of the company's bylaws. The nurse and I feel that she should be covered by a malpractice policy as a doctor is covered at one of our other facilities. Any other mfg ops out there who have a nurse, and how do you handle this issue?

Shadowfax

The bylaw indemnification protects the nurse - to the extent of the co.s assets - but certainly does not protect the co from the nurses liability. Why wouldnot the co insure this liability just as it insures against other liabilities? Are you self insured? And, if I were the nurse, I would not be entirely confortable with the indemnification - it could change at any time, and maybe there will - or will not - be enough co assets to bail me out.

marc

As I understand it, Nurse Practitioners have most of the issues and exposures as do Doctors. They can diagnose, prescribe medication, etc. I believe the Nurse Practitioner should be treated the same as the doctor - similar exposure, similar need to protect both the company and the EE. The analysis Shadowfax made is a good one regarding the indemnity clause. And by the way, indemnity works very differently than a liability policy in its method of protection. The legal guys will have a different spin, but it acts more like a reimbursement than a first defense. The NP would have to spend the money first and perhaps have a judgement before the indemnity kicks in.

Rockie

We have nurse practitioners in our medical practice and as part of their licensure, they are REQUIRED to be covered by malpractice insurance. They are not allowed to practice in SC without this insurance and must have proof of it before they are issued their state licensure.

The company is very exposed to liability if something should happen to an employee this person was practicing medicine on.

hhaynal

Thanks for the input! Corp attys indicate that bylaws cover NP even if she is grossly negligent, but like both of you have noted, NP may suffer the liability up front prior to being indemnified. As a side note, yes we are self-funded. The dr at the other site is requesting that the company carry policies on its nurses but no decision seems forthcoming.