3 Things To Know About Occurrence Malpractice Insurance

All physicians need to maintain a current malpractice insurance policy. This policy acts as a type of liability insurance to protect against financial harm in the event a mistake is made during the treatment of a patient.

There are a few different types of malpractice insurance that today's physicians can choose from. Learn more about occurrence malpractice insurance so that you can determine if it's the right type of policy for your practice.

1. Coverage for All Claims Made

Occurrence malpractice policies provide you with the certainty of knowing that any claim made based on an event that occurred while the policy was valid will be covered by the insurer.

Other types of insurance (like claims-made policies) will only guarantee coverage if both the event and the date the claim is adjudicated take place while the policy is valid. This can pose a challenge for physicians who switch hospitals or clinics on a regular basis.

An occurrence policy will ensure that any malpractice claim made against you will be covered by your policy.

2. Claims Made After a Lapse Are Covered

Another significant benefit that an occurrence malpractice insurance policy can offer is coverage for claims that are made after the policy itself has lapsed.

The statute of limitations for medical malpractice lawsuits can extend beyond your period of coverage. With other policies, no support is offered for claims filed after the policy expires.

As long as the event in question occurred while your policy was active, your insurer will cover the claim.

Knowing that you will have the financial backing of an insurance company can be a significant relief should you receive notification of a claim after your malpractice insurance has lapsed.

3. Long-Term Affordability Is Provided

Some physicians shy away from occurrence malpractice insurance because these policies have a higher up-front cost than their competitors. It's important that you take the time to consider the long-term affordability of any insurance product before making a final decision.

If you want to enjoy coverage similar to that of an occurrence policy with another type of malpractice insurance product, you will need to invest in tail coverage. Tail coverage is coverage that extends for a set amount of time beyond the end date of the policy.

The cost of tail coverage can vary. When added to the initial cost of the policy itself, medical malpractice with tail coverage can be more expensive than an occurrence policy.

Contact an insurance agent for more information about medical malpractice insurance