Do Nurses Need Malpractice Insurance as a Self-Employed Nurse?

To the Nurse Building Something of Their Own

If you are stepping into business — whether that’s concierge nursing, consulting, education, or coaching — we need to talk about something serious.

Malpractice insurance.

Not the kind your employer carries.

Your own policy.

I say this as a nurse who has worked bedside, carried personal coverage, and built businesses: once you become self-employed, you are no longer protected by a hospital’s legal umbrella. Even if you work in the hospital, LTC, corrections: You need to have your own coverage.


What Is Malpractice Insurance for Nurses?

Malpractice insurance (also called professional liability insurance) protects you if:

  • A client claims negligence

  • A patient alleges harm

  • A family files a complaint

  • You are named in a lawsuit

  • You must defend your nursing license

Even if a claim is unfounded, legal defense alone can cost thousands.

This is not fear-based thinking.

It is responsible business ownership.


Why Employer Coverage Is Not Enough

When you work for a hospital or agency:

  • Their policy protects them first

  • Their attorneys represent the organization

  • Coverage may not extend to actions outside your job description

  • It does not follow you into private business

If you are:

  • Starting concierge nursing

  • Offering private duty services

  • Launching a consulting or education practice

  • Providing independent wellness services

You need your own protection.

If you’re exploring Self employed nursing, this is foundational — just like choosing an LLC or setting up a business bank account.


What Happens If You Don’t Have It?

Let’s be clear.

Without malpractice insurance:

  • You are personally liable

  • Your savings are at risk

  • Your business can be financially destroyed by one claim

  • You may pay out-of-pocket for legal defense

As nurses, we are trained to assess risk in patients.

Do not ignore risk in business.


What Type of Coverage Do Self-Employed Nurses Need?

While specific coverage amounts depend on your services and state regulations, most independent nurses should consider:

  • Professional liability insurance

  • General liability insurance

  • License defense coverage

  • Cyber liability (if handling digital records or telehealth)

If you are offering concierge or private nursing, this becomes even more critical.

If you’re mapping out your next steps, here’s a helpful breakdown on how to become a self employed nurse.

Coverage is not optional in serious business.

It is operational.


Actionable Guidance for Nurse Entrepreneurs

If you are self-employed or planning to be:

1. Secure Coverage Before Seeing Clients

Do not launch services without active insurance.

2. Confirm Scope of Practice Alignment

Your services must align with your state nursing regulations.

3. Separate Personal and Business Assets

Use an LLC and business bank account.

4. Maintain Clear Documentation

Even in private practice:

  • Document interactions

  • Use consent forms

  • Outline service agreements

5. Review Your Policy Annually

As your services expand, your coverage should too.


Common Mistakes to Avoid

  • Thinking “I’m just doing coaching, I don’t need it”

  • Believing cash-pay eliminates liability

  • Copying another nurse’s coverage without reviewing your scope

  • Waiting until after your first client

Insurance is a startup cost.

Not a “later” expense.


Tools & Support for Building Safely

If you are building your nurse business and want systems, templates, and guidance on structure, documentation, and service setup, explore these concierge nurse resources.

Business ownership requires more than passion.

It requires protection.


Final Thoughts

As nurses, we protect our patients.

As entrepreneurs, we must protect ourselves.

Malpractice insurance is not about expecting the worst.

It is about building responsibly.

If you want long-term freedom, income stability, and professional credibility, this is non-negotiable.

Christine Bonaventure, RN
Book a 1:1 Clarity Call


PS

Here are some malpractice insurance companies:

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