Occurrence-based medical malpractice insurance is a type of insurance that provides coverage for medical malpractice claims regardless of when the claim is filed, as long as the incident occurred while the policy was in effect. This means that if a patient files a claim against a healthcare provider for an incident that happened years ago, the provider will be covered if they had an occurrence-based policy in place at the time of the incident, even if they have since switched insurers.
Key points to remember about occurrence-based insurance:
- No retroactive date: Unlike claims-made policies, occurrence-based policies do not have a retroactive date. This means that they provide coverage for incidents that occurred at any time during the policy period, regardless of when the claim is filed.
- No need for continuous coverage: With occurrence-based insurance, there is no need to maintain continuous coverage with the same insurance company. If a provider switches insurers, they are still protected for incidents that occurred while they were insured by the previous company.
- Cost: Occurrence-based policies can be more expensive than claims-made policies, especially for providers with a long history of practice, as the insurer must consider the potential for claims arising from incidents that occurred many years ago.
In summary, occurrence-based medical malpractice insurance thru Clifton Insurance Agency, Inc offers broader coverage than claims-made policies, as it provides protection for incidents that occurred during the policy period, regardless of when the claim is filed. However, it’s important to understand the potential cost implications of occurrence-based policies. The type of coverage that you choose whether occurrence or claims-made is best determined by your insurance agent or carrier. Costs differ from state to state so both lines of coverage are exceptional with an AM Best rated carrier.