What is the role of professional liability insurance for nurses?

• A. It helps cover settlements and damages arising from alleged negligence
• B. It guarantees immunity from lawsuits
• C. It eliminates malpractice
• D. It is unnecessary for licensed nurses

Answer: (A)

Professional liability insurance is designed to protect nurses from the financial fallout of claims of negligence or malpractice. It helps pay for legal defense and, if a settlement or judgment results, covers the damages up to the policy limits. This makes it the best answer because the insurance directly addresses the financial risk that can come from alleged nursing errors, rather than promising immunity or eliminating mistakes. It does not guarantee immunity from lawsuits, nor does it automatically eliminate malpractice or render coverage unnecessary for licensed nurses. Policies vary—some are provided by employers, others are individual—so understanding terms like claims-made versus occurrence coverage and what acts are covered helps ensure adequate protection when needed.