Insurance Term Definitions for CRNAs

CRNA and nurse anesthesiologist malpractice insurance policies contain specialized terminology that can be difficult to interpret. This glossary is designed to help CRNAs better understand key insurance terms commonly found in malpractice policies, including those offered through AANA Insurance Services.

Additional Insured: Any person or entity listed on the policy declarations page as covered under the policy.

Administrative Expenses: Reasonable expenses incurred for attorney services and related costs associated with administrative hearings.

Administrative Hearing: A disciplinary proceeding initiated by a licensing authority, health department, or hospital related to professional services.

Bodily Injury: Bodily harm, sickness or disease, including death resulting therefrom.

Claim: A written demand for money or services as compensation for civil damages.

Claims Expense: Costs associated with the investigation, defense, and resolution of a claim, excluding damages paid to a claimant.  Examples include attorney fees paid to the law firm to defend an Insured, court costs, expert fees, reporter fees, etc. 

Consent to Settle: A policy provision that determines whether the insured must approve a settlement before it is finalized.

Criminal Prosecution: Any governmental enforcement of criminal laws, including offenses or convictions, which could result in imprisonment.

Event: An accident, including continuous or repeated exposure to substantially the same conditions, resulting in bodily injury or property damage unexpected and unintended from the standpoint of the Insured. 

Hammer Clause: A consent-to-settle provision that limits the insurer’s liability if the insured refuses a recommended settlement.

Loss: Civil damages the insured is legally obligated to pay as a result of adjudication or settlement, excluding defense costs.

Occurrence: Coverage triggered by incidents that occur during the policy period, regardless of when a claim is reported.

Claims-Made: Coverage triggered only when both the incident and the claim occur while the policy is active.

Policy Period: The time frame during which coverage is in effect as stated on the declarations page.

Professional Services: Healthcare services rendered by the insured within the scope of licensure, training, and qualification.

Suit: Civil proceeding in a court (includes an arbitration proceeding).

Tail Coverage: An extended reporting period endorsement that allows claims to be reported after a claims-made policy ends.

Wrongful Act: An alleged negligent act, error, or omission in the performance of professional services.