Placed nurses making clinical errors. Facilities demanding you cover their legal defense. Independent contractor misclassification. You inherit the risk of the environments you staff—without having operational control.
You place RNs, LVNs, and allied health professionals in hospitals, ALFs, and clinics across Texas. You don't supervise their daily shifts, you don't control the facility's protocols, and you aren't in the room when care is delivered. But your contracts tie you to their outcomes.
Most medical staffing programs we review have a massive contractual indemnification gap. When a nurse you placed makes a mistake, the family sues the facility. The facility then points to the indemnification clause in your staffing contract, demanding your agency pay for their legal defense. If your policy isn't built for that, you're paying it out of pocket.
Here is exactly how exposure triggers for medical staffing firms operating in Texas facilities.
| The Exposure | Coverage That Responds | What It Protects | Financial Exposure |
|---|---|---|---|
| Contractual Indemnification Gap. A nurse you placed makes a fatal medication error. The hospital is sued and invokes your staffing agreement's indemnification clause, demanding your agency cover their legal defense. | Professional Liability with Contractual Liability | Coverage that extends to assume the liability you contractually agreed to take on for the facility. | $400K–$850K |
| Vicarious Liability Exposure. A patient falls under the care of your agency nurse. The family names both the facility and your staffing agency in the lawsuit, claiming you failed to vet the nurse's competency. | General & Professional Liability | Your agency's direct defense against claims tied to the actions of the professionals you place. | $250K–$500K |
| A&M Facility Exposure. A placed technician is accused of inappropriate conduct by a vulnerable resident at an Assisted Living Facility. | Abuse & Molestation (A&M) with Dedicated Limits | Dedicated $1M limit for abuse allegations, which is frequently required by facility staffing contracts. | $500K–$1M+ |
| Independent Contractor Audit. The Texas Workforce Commission audits your firm and determines your "1099 independent contractors" act like W2 employees, triggering penalties. | Workers' Comp & Employment Practices Liability (EPLI) | Protection against regulatory misclassification, back-premiums, and employment-related disputes. | $50K–$100K+ |
30-minute call. Walk us through your facility contracts, your placement types, and your W2 vs. 1099 mix. We'll tell you exactly where your current policy breaks—and what a claim would actually cost.