Claims-made medical malpractice insurance is a type of insurance that provides coverage for medical malpractice claims only if the policy was in effect both when the alleged incident occurred and when the claim is filed. This means that if a patient files a claim against a healthcare provider for an incident that happened years ago, the provider will only be covered if they had a claims-made policy in place at both the time of the incident and the time of the claim. Tail insurance would also need to be purchased at the cancellation of the claims-made policy to ensure coverage is provided via the statute of limitations. This can vary from state to state; Clifton Insurance Agency, Inc. understands this.
Key points to remember about claims-made insurance:
- Retroactive date: Most claims-made policies have a retroactive date, which is the earliest date that incidents are covered. Any incidents that occurred before this date are not covered, even if the claim is filed after the retroactive date.
- Continuous coverage: It’s important to maintain continuous coverage with the same insurance company to ensure that any claims arising from incidents during the policy period are covered. If a provider switches insurance companies, they may need to purchase “tail coverage” to protect themselves from claims arising from incidents that occurred while they were insured by the previous company.
- Cost: Claims-made policies can be less expensive than occurrence-based policies. However, if the practitioner has a history of claims, then the cost can increase at the insurance carrier’s discretion or from year to year via the continuous retroactive date.
In summary, claims-made medical malpractice insurance offers coverage for claims filed during the policy period, regardless of when the incident occurred, as long as the policy was in effect at both times.
However, it’s important to understand the limitations of claims-made policies, such as the retroactive date and the need for continuous coverage, to ensure adequate protection.