School of Nursing: Standard On Professional Malpractice Coverage

Summary

These guidelines are intended to help clarify malpractice insurance provided by the University to faculty members and help faculty make informed decisions about the purchase of additional malpractice coverage.

Body

Title

School of Nursing: Standard On Professional Malpractice Coverage

Introduction

Purpose

These guidelines are intended to clarify malpractice insurance provided by the University of North Carolina at Chapel Hill (UNC-Chapel Hill) and help faculty determine if they need additional malpractice coverage.

Scope of Applicability

This standard applies to UNC-Chapel Hill School of Nursing (SON) faculty members.

Standard

Faculty members are responsible for determining whether they have sufficient professional malpractice insurance in their role as a faculty member at the SON. This is an individual decision based on numerous factors. These guidelines are intended to help clarify malpractice insurance provided by the University to faculty members and help faculty make informed decisions about the need for additional malpractice coverage. UNC-Chapel Hill Risk Management Services, the Risk Manager for North Carolina Public Officials and Employees Liability Commission and the UNC-Chapel Hill Office of University Counsel have reviewed and endorsed these guidelines.

  1. Faculty members who have administrative or clinical teaching assignments, regardless of nursing education, licensure, or certification, are not required to purchase additional malpractice insurance for their faculty role if their assignment is strictly clinical teaching and/or administrative.
  2. Faculty members who are registered nurses or advanced practice registered nurses (nurse practitioners, clinical nurse specialists, certified nurse midwives, certified nurse anesthetists) and who render nursing services will need to have professional malpractice insurance beyond what UNC-Chapel Hill provides. In general, UNC-Chapel Hill does not provide this malpractice coverage for practice outside the normal faculty role. However, most clinical agencies provide this coverage for faculty with practice contracts. 
  3. Even if faculty members do not regularly practice but periodically provide nursing services to clients, patients, or advise colleagues or neighbors, they are encouraged to seek additional professional malpractice coverage.

Although not required for faculty who only function in their faculty roles, many faculty members prefer to purchase their own malpractice coverage in the event they exceed the scope of faculty work and are at risk for liability (e.g. by providing advice to colleagues, friends, neighbors, etc.). The following guidelines apply to faculty members who are nurses (in any nursing category) or advanced practice registered nurses and who function strictly in an administrative or clinical teaching capacity:

  • Coverage from the North Carolina Defense of Employee Act and the Employee Excess Liability Policy applies to faculty members who act within the scope and course of their SON employment, or as a first responder, and who function strictly in an administrative and/or clinical teaching capacity. This coverage extends world-wide, even in a hospital clinic or elsewhere in a hospital, as long as the faculty members are acting within the scope and course of their SON employment and are not employed by, or working for, the hospital proper. The SON does not have reason or an obligation to purchase medical professional liability coverage for these faculty members who act within the scope and course of their SON administrative or preceptor clinical teaching capacity employment.
  • Any claims are situation specific and are subject to the interpretation of the State Attorney.
  • Faculty members who practice outside of their scope of SON employment will not be covered by the NC Defense of Employee Act and the Employee Excess Liability Policy.

All faculty members are encouraged to consider the following:

  • Professional malpractice insurance carriers will only offer insurance for one's highest level of education, licensure, or certification.
  • Some carriers offer insurance coverage for part-time malpractice coverage. Faculty members who work full-time with split responsibilities with practice and teaching will need to explore whether the insurance coverage will process claims if part-time malpractice insurance is purchased (rather than full-time). Insurance companies may not process claims if part-time malpractice insurance is purchased yet the faculty member works full-time, regardless of type of workload responsibilities.
  • Faculty who practice actively may choose to purchase additional malpractice coverage even when one's employer or practice agency offers coverage. It is recommended you review your employer provided professional malpractice coverage to determine if it is sufficient to cover advance practice nursing.
  • "Occurrence" coverage is recommended rather than a "claims" policy so that coverage is available at the time of a lawsuit regardless if the policy is still in effect. Consider purchasing a "tail" policy following a claims-made policy.
  • Avoid discussing presence or absence of professional malpractice insurance with clients/patients/families.

The American Association of Nurse Practitioners (AANP) has recommendations about Nurse Practitioner's need for malpractice insurance at https://www.aanp.org/ .

Other websites which may be of interest:

Exceptions

N/A

Definitions

N/A

Related Requirements

External Regulations and Consequences

University Policies, Standards, and Procedures

Contact Information

Primary Contact

Lisa Miller, Associate Dean for Administration

Important Dates

  • Effective Date and title of Approver: Information unavailable
  • Last reviewed by Deans Cabinet 7/24/24

Approved by:

Lisa Miller, Associate Dean for Administration

Details

Details

Article ID: 132420
Created
Thu 4/8/21 9:30 PM
Modified
Wed 9/4/24 2:06 PM
Responsible Unit
School, Department, or other organizational unit issuing this document.
School of Nursing
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Associate Dean, Administrative Services
Next Review
Date on which the next document review is due.
09/03/2025 12:00 AM
Last Review
Date on which the most recent document review was completed.
09/03/2024 12:00 AM
Last Revised
Date on which the most recent changes to this document were approved.
12/18/2018 12:00 AM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
12/18/2018 12:00 AM
Origination
Date on which the original version of this document was first made official.
08/29/2016 12:00 AM

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All employees and recognized agents of the State of North Carolina while acting within the scope of their employment are provided with this statutory and insurance protection. This excess liability insurance policy is intended to seamlessly fit with the protection provided by the Tort Claims Act, giving employees a secondary tier of protection.