Not as a general rule. Business and Professions Code 2216.2 requires liability insurance or an interindemnity trust for surgery performed outside a general acute care hospital. Hospitals, credentialing bodies and payer contracts require proof of coverage as a term of the contract. Independent nurse practitioners under AB 890 must carry it by statute.
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It is designed to help replace lost income and cover extra expense if a covered event forces the practice to close temporarily.
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Practices hold protected health information under HIPAA and the Confidentiality of Medical Information Act. A breach starts a 60-day HIPAA notice clock and, since 1 January 2026, a 30-day ...
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