Real Nurse Practitioner Malpractice Claim: My Employer Refused to Cover Me

When you’re busy caring for patients, insurance coverage probably isn’t the first thing on your mind. Most nursing professionals assume their employer-provided insurance will protect them if something goes wrong. That’s one of the benefits of working full-time for a company or organization, right?

Unfortunately, that’s not always how it plays out.

This is the real story of a nurse practitioner malpractice claim against an NP at an assisted living facility. The facility provided her with nursing malpractice insurance, but for whatever reason, it refused to defend her. Luckily, she also had her own malpractice policy from Berxi.

Stories like these show that even in seemingly cut-and-dried circumstances, employer-provided insurance could leave you unprotected — and illustrate the importance of having your own supplemental malpractice insurance policy.

The Case: A Fall, a Hospital Transfer, and a Tragic Death

The patient in this case was an older adult with complex medical conditions, including chronic obstructive pulmonary disease (COPD) and congestive heart failure, who was prescribed blood thinners. His family was initially considering hospice care, but the patient was ultimately admitted to the assisted living facility where the NP worked.

A few days after admission, the patient experienced a fall inside the assisted living facility. While the assisted living staff didn’t observe any visible injuries, the patient was transferred to a hospital for an evaluation out of an abundance of caution.

At the hospital, imaging revealed a brain bleed. Tragically, four days later, the patient died.

Why Was the NP Sued if She Barely Saw the Patient?

The patient’s family eventually filed a wrongful death suit against the assisted living facility, in which our NP was named, as well as a traveling nurse group and its visiting nursing professional. While falls in assisted living facilities are very common, it is also not uncommon for a grieving family to sue facilities seeking some kind of restitution and resolution.

In this case, the NP, who carried her own supplemental malpractice policy with Berxi, saw the patient only once very briefly. Her involvement in his care was extremely limited. Given this minimal involvement, she was shocked to learn she’d been named in the lawsuit. There was no allegation that the NP caused the fall (and as mentioned, falls are unfortunately common in assisted living settings). There was also no specific clinical mistake tied to the NP.

So why sue her?

It’s impossible to say for sure why the plaintiff decided to name the NP in the suit, but in malpractice litigation, Berxi claims representatives frequently see cases in which attorneys review care logs and simply name every provider who had any contact with the patient. Even if a provider’s involvement was brief — and even if they didn’t make a clinical error — they can still be included in the lawsuit: a case of simply “being in the room.” Being named in a lawsuit doesn’t require someone to have done something wrong.

And that’s precisely why having comprehensive malpractice insurance — and the legal, financial, and reputational protection it provides — is so vitally important for healthcare professionals.

Why Didn’t the NP’s Employer Defend Her Claim?

Here’s where things get especially concerning: the NP’s employer-provided malpractice insurance straight-up failed to defend her. She was a regular employee at the assisted living facility, and the facility provided her malpractice coverage. Under normal circumstances, that employer policy would be responsible for hiring (and paying for) her defense counsel in the lawsuit. That’s standard. And the first step of providing defense is for your attorney to file a response to the complaint.

In this case, the insurance company responded on behalf of the assisted living facility within the required deadline, but it didn’t respond on behalf of the NP. Because she assumed she’d be taken care of, the NP had no idea that she was on the verge of receiving a default judgment— and if this happens, in the eyes of the court, each allegation against the defendant is accepted as true, and they can be held responsible for financial damages.

Why didn’t the insurer’s attorney respond on behalf of the NP? Not because the NP wasn’t covered. Not because she had done something outside her scope. And not because she wasn’t an employee. Her employer’s insurer simply chose not to defend her — without a valid reason.

While an employer refusing coverage is rare, it can happen. It may have been that the employer was exceeding the policy limits for the year, and since the facility was also named, they were out of funds. Or the company believed there was a conflict of interest between its side of the story and the NP’s. It may have believed the NP was acting outside the scope of employment, for example, by being there during off-hours. But the lack of communication between the employer, the insurance company, and the NP could be a sign that the insurer just flat-out dropped the ball.

This left the NP in an extremely vulnerable position. Even if she avoided the default judgment without coverage, she would have been forced to secure her own attorney and pay out of pocket for legal representation in a wrongful death lawsuit. And malpractice cases are expensive: even a straightforward defense can cost tens of thousands of dollars.

Fortunately, she had her own supplemental malpractice policy with Berxi.

How Berxi Stepped In

When the NP called Berxi, our claims specialist immediately set to work hiring a pre-vetted attorney who could defend our client and prevent her from defaulting.

Before going to trial, the attorney for the patient’s family offered to settle the case with the NP for $7,500. The settlement amount was low for a wrongful death suit, which may signal that the attorney understood her involvement was minimal and their case against her was weak. Either way, the NP was tempted to settle.

But if the NP did nothing wrong, why settle? Going to trial can be an extremely lengthy and draining experience, and the NP may have wanted to simply resolve the matter. Berxi’s “consent to settle” clause means the policyholder — not the insurer — gets the final say on whether to settle or go to trial. The NP made a personal decision to put the case behind her and have her insurance company pay the fine.

Had she wanted to fight the case in court, Berxi would have supported her with a top-notch legal defense team throughout the trial. But given her circumstances at the time, settling made sense for her.

Ultimately, the attorneys charged Berxi around $18,000 for their legal work. Combined with the $7,500 settlement, this NP’s case cost about $25,000. This is money that she might have had to pay out of pocket without her supplemental insurance. And if she’d defaulted, the tab could’ve been a lot higher.

The Lesson: Always Make Sure You’re Covered With a Supplemental Policy

This case is a textbook example of why nursing professionals, including NPs, RNs, LPNs, and other healthcare providers, should strongly consider carrying their own malpractice insurance. Here are some takeaways:

• Being named in a lawsuit doesn’t necessarily mean you did anything wrong. Sometimes you’re named because you were simply present or because your employer didn’t carry enough coverage.
• Employer coverage isn’t guaranteed, even when it should be. This NP was a full-time employee acting within her job duties, but her employer still refused to defend her.
• Legal defense is expensive — far more expensive than an individual policy. The NP’s total costs were $25,000. But she paid a fraction of that for her Berxi policy. In fact, claims-made NP supplemental policies can be as low as $370 for the entire year.
• Supplemental insurance helps ensure that you won’t be left unprotected. Even when employer coverage is supposed to step in, supplemental coverage fills the gap when things don’t go as planned.
• You get more control with your own policy. Berxi’s consent-to-settle provision ensures the provider, not the insurer, has the final say in whether you settle or go to trial.

Healthcare professionals dedicate their careers to supporting patients. But that doesn’t always prevent them from being drawn into litigation. And when that happens, having the right coverage can spare enormous stress, financial strain, and professional risk.

Protect Yourself With Berxi Malpractice Insurance

No one expects to be named in a malpractice lawsuit. But that’s the reality many healthcare professionals face. In this NP’s case, her professional care and minimal involvement didn’t prevent her from being pulled into a wrongful death suit.

What did protect her was her decision to carry a Berxi supplemental malpractice insurance policy.

Your employer might defend you when it matters — but as this case shows, they might not. Having your own coverage means you’ll have something to lean on.

With a Berxi supplemental malpractice insurance policy, you get:

• Quick, easy online quotes and policy management
• Expert claims support when you need it most
• High-quality legal representation to defend the claim at no additional cost
• Protection for your professional reputation
• Defense for licensing board actions, which employer policies typically don’t cover

An added bonus: buying direct from Berxi can save you an average of 20% on your nursing malpractice insurance plan. And because Berxi is part of Berkshire Hathaway Specialty Insurance Company, our malpractice insurance policies come with the knowledge that you’re supported by a company that has the highest possible financial strength rating of A++ from AM Best and AA+ from Standard & Poor’s.

To protect your livelihood, career, and peace of mind with Berxi malpractice insurance, start your quote here.

 

Image courtesy of iStock.com/PIKSEL

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Last updated on Feb 25, 2026.
Originally published on Feb 18, 2026.

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The views expressed in this article are those of the author and do not necessarily reflect those of Berxi™ or Berkshire Hathaway Specialty Insurance Company. This article (subject to change without notice) is for informational purposes only, and does not constitute professional advice. Click here to read our full disclaimer