Choosing between occurrence and claims-made malpractice insurance is crucial for surgeons. Understanding the nuances of each is essential to make an informed decision. Here’s a quick and concise breakdown that explains the differences between occurrence vs claims-made medical malpractice insurance policies.
Key Difference Between Occurrence and Claims-Made Policies
Occurrence Policy: Covers incidents during the policy year, regardless of when a claim is reported.
Claims-Made Policy: Covers incidents during the policy year and when the claim is filed. Tail insurance is necessary if you switch carriers or jobs.
Navigating Coverage Scenarios
Occurrence Policy: Covers claims even if you change practices or locations.
Claims-Made Policy: Requires tail coverage or prior acts inclusion in the new policy for prior work protection.
Cost Variation Between Policies
Occurrence Policy: Higher upfront cost, stable rates, no need for tail insurance.
Claims-Made Policy: Lower initial cost, rates rise yearly, and tail insurance is essential when changing jobs.
Understanding Price Discrepancies
Occurrence Rates: Steady but higher; no need for retroactive tail coverage.
Claims-Made Rates: Flexible but subject to increase; tail insurance mitigates prior acts risk.
Differences in Coverage and Limits
Coverage: No variation in covered procedures between policies.
Limits: Occurrence covers each year; claims-made covers the entire prior acts period.
Switching Policies
Switching to Occurrence: Generally requires tail insurance.
Switching to Claims-Made: Easier without immediate need for tail, but rates increase over years.
Key Features of Occurrence and Claims-Made Policies
Occurrence Policy: Stable cost, no tail needed, suitable for various practices.
Claims-Made Policy: Affordable start, tail purchase required, fluctuating rates.
Finding the Medical Malpractice Insurance Fit
Making an informed choice regarding malpractice insurance is vital for surgeons. A knowledgeable insurance broker can provide tailored options from top-rated carriers to suit your specific situation. For expert guidance and quotes, reach out to SURGPLI, dedicated to helping surgeons secure the right policy for your needs from AM Best “A” rated carriers. Get a fast quote or call 1-800-969-1339.
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