Employer Coverage Isn’t Enough—Here’s Why You Need Proliability
April 30, 2025
If you’re a licensed professional—whether you're a nurse, athletic trainer, nurse practitioner, or speech-language pathologist—you’ve probably heard that your employer provides professional liability insurance. While that may offer some reassurance, depending solely on your employer’s coverage could leave you vulnerable to serious financial and professional risks.
Here’s the truth: employer-provided professional liability insurance often contains significant gaps. These gaps can impact your career, finances, and peace of mind—especially if you're ever named in a lawsuit or face an investigation by a licensing board.
Having your own professional liability insurance policy is not just smart—it’s essential. Whether you're full-time, part-time, or a volunteer, you need to understand the risks and make an informed choice about protecting your future.
What Is Professional Liability Insurance?
Professional liability insurance, often called "malpractice insurance,” protects professionals against claims of negligence, mistakes, or failure to perform their professional duties.
This type of insurance typically covers:
- Legal defense costs
- Settlements and judgments
- Licensing board investigations
- Claims of negligence or mistakes in service delivery
Professional liability insurance isn't just a luxury if you’re in a profession that requires licensing and comes with a high duty of care—like healthcare or fitness. It’s a must.
Common Misconception: “My Employer Covers Me, So I’m Safe”
Many believe that employer-provided coverage is all you need. However, this assumption can leave you dangerously exposed. Let’s explore why employer coverage may not fully protect you—and why obtaining your own policy is essential.
1. Policy Limits May Not Be High Enough to Fully Protect You
Most employer-provided liability insurance is written with the business in mind—not the individual. These policies typically have shared limits, meaning the coverage is divided among all employees under the same policy.
Let’s say your employer's liability policy has a $1 million per claim and a $3 million annual aggregate limit. If multiple claims are filed in a short period—especially in high-risk fields like healthcare—those funds can be quickly depleted.
If a serious claim is made against you and the policy funds have already been tapped into by coworkers, you could be left underinsured—or not insured at all.
Bottom line: Your Proliability professional liability policy ensures you’re the sole beneficiary of the coverage limit, protecting your finances and livelihood.
Don’t wait until it’s too late—it takes only a few minutes to get a quote and the coverage you need. Call us at 800-375-2764 or visit proliability.com now.
2. Employer Coverage Often Lacks Key Benefits Like Lost Wage and Defense Reimbursement
Even if your employer’s policy covers claims, it might not cover everything you need—especially during a legal or administrative ordeal.
Many personal professional liability policies include:
- Lost wage reimbursement if you need to attend court or hearings
- Reimbursement for travel or lodging related to legal defense
- Coverage for legal defense costs associated with licensing board hearings or complaints—even if no formal lawsuit is filed
Your employer’s policy may not cover these benefits, and if it does, the limitations could be minimal or at the employer’s discretion.
Bottom line: Proliability coverage can be a crucial financial and emotional lifeline in a stressful and time-consuming legal process.
3. Part-Time, Volunteer, or Side Work May Not Be Covered
Many professionals supplement their full-time work with side gigs—consulting, freelancing, volunteering, or part-time positions. Your employer’s liability insurance only covers work within your specific role and location.
If you are a nurse volunteering at a free clinic, an athletic trainer with a weekend side gig, or an occupational therapist offering private sessions after hours, your employer's policy likely does not cover you during those activities.
This coverage gap can be devastating if a client or patient submits a claim for services you provided outside the main job.
Bottom Line: Having your own policy ensures you’re protected no matter where or when you’re practicing your profession.
4. Claims Filed After Employment Ends May Not Be Covered
Another major limitation? Employer policies generally end when your employment ends.
For instance, you leave your job in April, and a former client files a negligence claim against you in August. If you don’t have your own liability policy, you might not be covered—even if the incident occurred while you were employed.
One significant advantage of coverage through Proliability for healthcare professionals is all Allied Health products offered are written on an occurrence coverage basis. Occurrence Insurance policies cover any incident that occurs while the policy is active, regardless of when the claim is filed. Even if the policyholder is no longer practicing or the policy has expired, they remain protected for incidents that took place during the coverage period.
Key Features:
- Coverage Period: Covers any incidents that occurred during the policy’s duration, regardless of when the claim is filed. This can extend protection after you’ve left a job or retired.
- No Need for Tail Coverage: Because coverage extends indefinitely for incidents occurring during the active policy period, tail coverage - and its additional expense - is unnecessary.
- Consistent Premiums: Although premiums are typically higher than claims-made policies, they tend to be more stable over time.
Examples of Why Personal Coverage Matters
Case Study 1: The Overextended Nurse
Susan is an RN at a busy urban hospital. The hospital has a general professional liability policy that covers all staff. One day, she’s named in a malpractice suit after a patient develops complications. Unfortunately, two other nurses were also named in the same suit—and by the time the legal fees and settlement were negotiated, the employer’s shared limit was exhausted. Susan ended up paying out of pocket for the remainder.
If Susan had her own individual Proliability policy, she would’ve had separate legal defense funds and settlement coverage.
Case Study 2: The Passionate Volunteer
James is a licensed athletic trainer who volunteers at a local high school once a month. He assumes his employer’s policy covers any services he provides. But when a player files a claim alleging an injury against James at a game, he learns that volunteer services were not included under the employer’s policy. James faced legal costs, time off work, and stress without any support.
With a Proliability policy, James could have been protected with potential coverage for all his professional work, regardless of where it occurred.
Additional Benefits of Having Your Own Professional Liability Insurance
Still undecided? Here are a few more reasons to consider your own policy:
- Peace of mind: Knowing you have complete coverage allows you to focus on your work, not legal “what-ifs.”
- Portability: Your policy follows you, even if you change jobs or work in multiple locations.
- Customizable limits and add-ons: You can tailor your policy to your unique needs, choosing coverage limits that match your risk level.
- Protection from employer conflicts of interest: If your employer is ever sued, their legal team’s first responsibility is to protect the company—not you. Your Proliability policy ensures you have your own legal advocate.
How Much Does Personal Professional Liability Insurance Cost?
One of the best parts about personal coverage by Proliability is how surprisingly affordable it is. Many people find that they can secure comprehensive protection without breaking the bank. With Proliability, you are assured you have top-notch coverage when you need it most. It’s a small price to pay for the security and protection it offers.
Don’t Leave Your Career to Chance
In today’s litigious world, even the most careful and compassionate professionals face legal claims, licensing board complaints, or costly lawsuits. And while employer-provided liability insurance might seem sufficient on the surface, it’s not built to protect you personally.
Getting your own professional liability insurance is one of the smartest investments you can make in your career. Proliability is affordable and worth the investment to protect your career, income, and future.
The Sooner You Get Covered, the Sooner You’re Protected
Protect your career and financial future today—get a personalized quote in minutes.
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