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Texas NP Malpractice Insurance: What Limits Do Hospitals Actually Require?

Nurse practitioner sitting at desk

Credentialing teams in Texas rarely speak the same language. One hospital asks for “proof of malpractice,” another lists a minimum limit, and a staffing group drops a contract addendum with eight insurance acronyms.


Here’s the short, practical guide for Texas NPs to stay compliant—and avoid last-minute credentialing delays.


Are NPs required by Texas law to carry malpractice insurance?

There’s no statewide mandate that forces NPs to buy coverage. In practice, your employer, facility, or collaborating-physician agreement will set minimums—and most NPs carry a personal policy for portable coverage and independent legal defense. Texas Board of Nursing


What limits do hospitals and employers actually ask for?

Most Texas facilities request $1,000,000 per claim / $3,000,000 aggregate, though some contracts specify different numbers. Always pull the exact wording from:

  • Hospital credentialing packets

  • Employment agreements

  • Locums/staffing addenda

  • Collaborating-physician protocols


Claims-Made vs. Occurrence (and why tail matters)

  • Claims-made: protects you when a claim is first made while your policy is active. If you change jobs or retire, you may need tail coverage to protect against late-filed claims.

  • Occurrence: protects you for incidents that occur during the policy term, even if reported later—no tail required.

  • Texas nuance: claims-made forms include a minimum 30-day automatic ERP (extended reporting period); confirm the full tail you may optionally purchase if you’re leaving a role. Texas Department of Insurance


Typical scenarios (and the right response)

  • New role, different system → Ask credentialing to email their minimum insurance limits and whether they require claims-made or occurrence.

  • Moonlighting/PRN → Your employer’s policy may not follow you. A personal NP policy can travel with you across settings (subject to underwriting).

  • Telehealth into or out of TX → Confirm policy territory and licensing; many policies may cover multi-state telehealth if compliant with state rules.

  • Contract says “tail required” → If you have claims-made, get a tail quote sized to the facility requirement. If you have occurrence, reply with your dec page—no tail needed.


The hospital-ready checklist

  • Your dec page shows limits that meet or exceed their minimums.

  • Named insured matches your legal name and credentials.

  • Policy type is what the contract expects (claims-made or occurrence).

  • If claims-made, your retroactive date and tail plan are documented.

  • If you moonlight, make sure the policy may cover those settings.


What should a Texas NP buy?

Most Texas NPs choose $1M/$3M in either claims-made (with a plan for tail) or occurrence. Add license defense and HIPAA/privacy endorsements; verify moonlighting and telehealth language if applicable. Always align the final selection to your contract.


Get covered in minutes

When you’re ready, use our Instant NP Quotes page to compare options and bind online. You’ll receive your COI immediately so you can finish credentialing without delays.


Disclaimer

Sample content only—coverage, availability, and pricing are always underwritten and may vary by carrier and risk factors.

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