Insurance companies providing professional indemnity insurance for nurses control the risks involved by defining the limits of their coverage in the insurance policy. These limits set the parameters they use to determine whether an indemnity claim is valid. The insurer will not cover claims that fall beyond these limitations. Careful scrutiny of this part of an insurance policy is crucial in order to understand what may be expected of an insurer in the event a claim is made.
Most limitations are stated clearly in the contract. For instance, there are policies that indicate the amount of money that may be claimed in order to cover a liability. Because court proceedings are integral to professional indemnity, policies also contain provisions regarding legal representation during investigations, enquiries from professional nursing association disciplinary bodies, official court enquiries, and other similar situations which have bearing on the claim.
Insurance limitations should be made to fit the particular nursing field a nurse is in. The claims that an operating room nurse will face will be very different from those for a nurse in pediatrics. A comprehensive policy can thus provide too much coverage in some areas and too little in others.
Some limitations, however, are embedded in the definition of the terms being used. A good example 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 certain claims even when the claim is made after the required period. They do so if the situation from which liability and indemnity arise is considered a prior known fact. This phrase implies that if the situation were something the insurer was formally informed of during the period of coverage, they might be able to cover claim. There are of course very specific clauses that define what would constitute as a prior known fact.
What is advertised by a company as professional indemnity insurance for nurses may appear to fit the needs of a professional when managing the risks involved in doing business. However, it is the wording of the insurance policy which will determine whether this is indeed the case. Before agreeing to a policy, a careful study of its wording should be carried out in order to ensure that what is advertised fits what is needed. The bottomline is to make sure that you read the fine print before signing a policy. Don't hesitate to ask the insurer for clarifications with regards to anything that's stated in the policy that you don't understand. Make sure that everything is clear and correct to avoid insurance policy issues in the future.
Most limitations are stated clearly in the contract. For instance, there are policies that indicate the amount of money that may be claimed in order to cover a liability. Because court proceedings are integral to professional indemnity, policies also contain provisions regarding legal representation during investigations, enquiries from professional nursing association disciplinary bodies, official court enquiries, and other similar situations which have bearing on the claim.
Insurance limitations should be made to fit the particular nursing field a nurse is in. The claims that an operating room nurse will face will be very different from those for a nurse in pediatrics. A comprehensive policy can thus provide too much coverage in some areas and too little in others.
Some limitations, however, are embedded in the definition of the terms being used. A good example 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 certain claims even when the claim is made after the required period. They do so if the situation from which liability and indemnity arise is considered a prior known fact. This phrase implies that if the situation were something the insurer was formally informed of during the period of coverage, they might be able to cover claim. There are of course very specific clauses that define what would constitute as a prior known fact.
What is advertised by a company as professional indemnity insurance for nurses may appear to fit the needs of a professional when managing the risks involved in doing business. However, it is the wording of the insurance policy which will determine whether this is indeed the case. Before agreeing to a policy, a careful study of its wording should be carried out in order to ensure that what is advertised fits what is needed. The bottomline is to make sure that you read the fine print before signing a policy. Don't hesitate to ask the insurer for clarifications with regards to anything that's stated in the policy that you don't understand. Make sure that everything is clear and correct to avoid insurance policy issues in the future.
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