Claims Made vs. Occurrence Medical Professional Liability (MPL) Coverage
When selecting a medical malpractice/medical professional liability (MPL) policy, there are two types of coverages to choose between – claims made and occurrence. What are the main differences between these policies, and which should you choose?
Both claims-made and occurrence policies offer protection for physicians in the event of a malpractice lawsuit, including the expenses associated with defending and settling malpractice claims. The primary difference between claims-made and occurrence policies is the timeframe (policy period) in which they provide coverage.
With a claims-made policy, coverage is provided for malpractice claims that take place and are reported during the policy period – after the retroactive date and before the termination date. If a policy terminates, extended reporting coverage (a “tail”) is required to extend the timeline and keep coverage in force.
In contrast, occurrence policies cover malpractice claims that occur during the policy period, regardless of when the claim is submitted – including when the policy is no longer active.
For these reasons, occurrence coverage is generally preferred. Getting access to occurrence coverage at competitive rates can be a challenge for brokers who do not specialize in MPL though.
Contact Kendall Jung, a Florida MPL specialist, to understand your options and for assistance in making this essential decision.