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The different types of medical malpractice insurance are:
Occurrence coverage is just what it sounds like. It provides protection for professional liability services rendered while the policy is in effect, regardless of when a claim is filed. Even after the policy expires, the occurrence policy will still provide coverage for professional services provided during the policy term. With an occurrence policy, there is no need to purchase a “tail policy.”
Claims-made policies provide coverage for claims that are reported to the insurer while the policy is in force and covers professional services rendered on or after: (1) the policy inception date or; (2) an earlier retroactive date. The retroactive date is a date mutually agreed upon by the company and the insured. Therefore, claims-made policies may provide coverage for professional services rendered from a retroactive date through a cancellation or expiration of the current policy, as long as the claim is reported to the insurer during a policy period. In other words, claims-made coverage is based on when the act is reported, not when the claim is actually made.
Tail coverage is commonly referred to as Extended Reporting Endorsement insurance. This type of coverage provides protection for claims reported after the final claims-made policy’s termination date, and from claims filed in the future after a policy cancellation date or a non-renewal.
How are physician premiums calculated?
Each carrier has unique rates that are determined and priced by the class of the physician. Generally premiums step rate over five years with the fifth year being the mature claims made rate. These rates can be offset by claims free discounts, group discounts, societal discounts or discretionary credits offered by the carrier. Conversely, a carrier may “debit” a premium to cover the potential risk due to physicians past claims history or the peculiar aspect of the physician’s practice.
ARCW Insurance is your independent agent. We offer coverage through the major carriers writing professional liability. And, we understand the unique aspects of a physician practice and have the ability and knowledge to find the right carrier for the right exposure.