The US District Court of Appeals has ruled that Greenspring Financial Insurance, the captive insurer of MedStar Health, is liable for defending and settling a lawsuit filed against a staffing agency nurse at the Washington DC Hospital Center.
In 2003, Greenspring issued an insurance policy providing coverage to employees of Washington Hospital Center for claims arising out of medical incidents within the scope of their employment.
The issue was whether a nurse, hired by a staffing agency and assigned to work at the hospital on a temporary basis, was covered as an ‘employee’ under the policy.
The district court concluded that the nurse qualified as an employee of Washington Hospital for purposes of the Greenspring policy and therefore ordered Greenspring to pay the cost of defending and settling medical malpractice claims against the nurse.
In regards to the ruling, the court of appeals stated: “We agree with the district court’s construction of the Greenspring policy, and we see no grounds for excusing Greenspring from its obligations under the insurance contract.”
