There are several popular types of liability insurance for health care professionals. Claims and occurrence based malpractice insurance offer different benefits under each policy. Claims-made coverage protects policyholders during the policy for alleged acts of negligence that take place and are reported during the policy period. Generally, there is a lag of time between when treatment was received and the filing of the claim, so rates are usually lower the first several years of the life of the policy.
As the policy matures, the risk and premiums increase until the five to seven year point for most doctors. One of the major benefits of this type of policy is the malpractice insurance cost is based on past and current experience and not future liability, which is difficult to estimate. These policies also allow increases in liability, so claims made a few years after the policy's inception will be able to cover a larger settlement down the road. Claims-made policies can be difficult if a physician decides to terminate coverage with a company or retire. Some policies include tail coverage for this reason, but if not, you have to purchase it yourself. Tail coverage is available after you change insurers or retire and it is based on location, liability, length of claims-made coverage, and the doctor's specialty. The larger the length of time covered, the higher the premium.
Related Articles:
Occurrence policies protect health care professionals while the policy is in effect, no matter when the claim is filed. The malpractice insurance cost for this type of policy is higher than claims-made policies because it is based on future projections and estimates on claims. Additionally, the limits of liability are those that were in effect when the incident occurred. Although this is more expensive, neither tail nor retroactive coverage is needed when you decide to terminate coverage.
Doctors' Insurance Agency is your source for the best coverage in Colorado and Wyoming. We specialize in claims and occurrence based malpractice insurance for individuals and businesses. With our thorough understanding of the intricacies of insurance, we can tailor make a policy that will offer you the best protection and benefits available. With over 24 years in the medical community, we have made a trustworthy and reliable name in liability coverage throughout the state. Call us for affordable premiums and exceptional customer service.
Related Articles: