Occurrence or Claims Made Policies

May 31, 2024

When seeking Medical Professional Liability Insurance for your practice, you will most likely be advised to purchase an “occurrence policy.” This type of coverage extends to incidents that transpired while the policy was active, regardless of when the claims are filed – even after the policy period has ended. The policy covers you for claims without a need to purchase a separate extended reporting endorsement (Tail)

Conversely, the other type of medical professional liability policy, called “claims-made insurance,” provides coverage only for incidents that are reported within the period of being insured with that carrier. Therefore, both the incident and claim filing must happen while the policy is in effect.

Under this condition, future coverage, also known as Tail, is separately purchased at the time of cancellation.

The choice between these types of policies comes down to 2 things, including:

  1. Annual premium comparison between 3 to 5 years.
  2. Availability of the occurrence policy as a product.

Most medical professional liability insurance carriers offer claims-made insurance contracts. The annual occurrence policies are generally 1.5 to 3 times more expensive when they are available.

Although the actual insurance contract and the response to professional liability claims made against you are the same, the lower-priced claims-made policies defer the expense of future coverage (tail) to the end of the policy.

In this ever-changing marketplace, The Doctors Insurance Agency works with carefully selected Carriers  and are committed to finding the right policy at a competitive market price.