The Different Types of Medical Malpractice Insurance

Being sued for medical malpractice can be a hassle and create a financial burden for any medical professional. It only takes one lawsuit to ruin a career, especially if you don’t have enough coverage or you don’t have the right type of insurance.

Before purchasing medical malpractice insurance, it’s important to know the difference between each type of policy:

Claims-Made Policy - This type of coverage is the most common type of policy, which protects you from events that occur while the policy is active. A patient has to file a claim while the policy is active, otherwise the incident will not be covered. If you cancel the policy or decide to purchase insurance through another company, the policy will not cover any future claims.

Occurrence Policy - This type of policy provides permanent protection for events that happened while the policy was still active, even if a claim is filed after the policy expired or was canceled. An occurrence policy usually costs more than a claims made policy because it is so difficult to predict future liability or claims.

Prior Acts - This type of policy has also been referred to as "nose" coverage. It is supplemental coverage that can be purchased from the new insurance company and covers any claims that occurred before the beginning of the new policy period. You would purchase this type of coverage if canceling a policy or switching insurance providers.

Tail Coverage - his type of supplemental coverage is also known as a reporting endorsement. It is available when a claimsmade policy is canceled or non-renewed. Tail coverage is a continuation of protection under a claims-made policy for any claims that arise in the future, but the incident occurred while the policy was still in force.

It's important to know the type of policy you have and what the limits of liability are. We can help you review your current policy as well as shop around to get more affordable rates.