What is a claims-made policy?
According to the NAIC, the policy in effect when a claim is reported responds for the loss, while the policy remains in force and during any applicable extended reporting period.
Claims-made vs occurrence malpractice insurance
A claims-made policy responds when the policy in effect at the time a claim is reported is still in force, or during any applicable extended reporting period. An occurrence policy covers a loss that happens during the policy period, regardless of when the claim is made.
What malpractice insurance is
According to the NAIC, medical professional liability insurance protects physicians and other licensed health care professionals from liability associated with wrongful practices resulting in bodily injury, medical expenses and property damage, as well as the cost of defending lawsuits.
The two basic types
- Claims-made: the policy in effect at the time a claim is reported responds for the loss, while the policy remains in force and during any applicable extended reporting period.
- Occurrence: covers a loss that occurs during the policy period, regardless of when the claim was made, and even after the policy has been canceled. The NAIC says this form was more popular in earlier times.
Side-by-side comparison
| Question | Claims-made | Occurrence |
|---|---|---|
| What triggers coverage | When the claim is reported | When the incident happened |
| After the policy ends | Responds only during any applicable extended reporting period | Still responds for incidents during the policy period, even after cancellation |
What to confirm in a written offer
- Who buys the coverage: you, the employer or facility.
- Which form the policy is: claims-made or occurrence.
- Whether tail or extended reporting coverage is provided.
- Who pays for tail or extended reporting coverage.
Read the AMA article on tail coverage, the physician offer checklist and the NP and PA offer checklist.
Sources
General information, not legal or insurance advice. Confirm details with the carrier, the state board, or DEA as relevant.
Frequently asked questions
What is an occurrence policy?
According to the NAIC, it covers a loss that occurs during the policy period, regardless of when the claim was made, and even after the policy has been canceled.
What should I confirm in a written offer?
Who buys the coverage, which form it is, whether tail or extended reporting is provided, and who pays for it.