Physicians frequently ask our agents about the differences between claims made and occurrence medical malpractice insurance policies. Accordingly, this blog will clearly summarize and contrast the basics of both types of medical liability insurance.
Occurrence malpractice insurance policies provide physicians with coverage for any act of alleged malpractice that occurs during the term of the policy. For example, consider an anesthesiologist who had occurrence malpractice insurance coverage in 2010 with Company X. Even if that anesthesiologist purchases a new liability insurance policy from Company Y in 2011 and 2012, her occurrence policy from Company X still covers her for any alleged act of malpractice that took place in 2010 – even if that claim is made against her in 2011, 2012, or any time in the future.
On the other hand, claims made malpractice insurance policies provide doctors and clinics with professional liability coverage only for claims that are actually made during the policy period. Accordingly, if our anesthesiologist had claims made coverage in 2010, her policy would not provide her with coverage for any claims of malpractice that were made against her after 12/31/10 – even if the alleged act of malpractice took place during 2010.
Because occurrence policies provide coverage in perpetuity for acts of malpractice that occurred during a finite period, they are typically more expensive – and also less common. Most doctors and surgeons purchase claims made policies because they are more affordable and can offer coverage that is just as sufficient, as long as the physician also has tail, which is a topic that will be covered in the next Malpractice Insurance Agency blog post.
Until then, visit our website for additional information about medical liability insurance in your state, or call one of our agents at 800.217.4020 if you have any questions. Malpractice Insurance Agency is licensed nationwide and has experience working with doctors in every medical specialty and sub-specialty.
