Professional Risk Management Services Professional Risk Management Services

Claims-Made vs.
Occurrence Policies

WHAT'S THE DIFFERENCE BETWEEN A CLAIMS-MADE AND OCCURRENCE POLICY?

There are two types of medical professional liability insurance policies to consider.

What is a claims-made policy?

Generally, a claims-made policy protects you when you are named in a practice-related legal proceeding (e.g. lawsuit) if both the legal proceeding is “made” against you and the psychiatric service was provided during the policy period. The limits of liability in effect at the time the legal proceeding is filed will apply. Should you cancel your policy, generally with this type of coverage, you should consider additional coverage to extend the reporting period - commonly called tail coverage. Premium for tail coverage may be waived in cases such as retirement, longevity with the program, death or permanent disability. However, when switching from another company’s claims-made policy to our policy, you may not need to buy their tail coverage.” Click here to see how and when tail coverage may not be necessary with PRMS®.

What is an occurrence policy?

An occurrence policy protects you in a practice-related legal proceeding as long as the policy was active at the time the treatment or incident occurred, regardless of when the legal proceeding is filed. The limits of liability in effect at the time of the “occurrence” will apply. Should you cancel your policy, you do not need to buy tail coverage with the occurrence policy.