Types of Common Malpractice Insurance

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Types of Common Malpractice Insurance

The world of medical malpractice insurance can be confusing. However, it is key that you understand what insurance is available, so your medical practice or insurance agency is covered at all times. Here are a few of the main types of common malpractice insurance you should be aware of.

Occurrence Insurance

Occurrence insurance is a quality and often-preferred type of medical malpractice insurance. Occurrence policies cover doctors or medical practices against malpractice claims based on when the incident occurred. For example, if the incident in question happened in December 2019 and you receive the claim in January 2020 after your policy has expired, you would still be covered. This type of insurance is often more expensive than other types, but many practices prefer it because it often takes time to create and process claims.

Claims-Based Insurance

Claims-based insurance is a cheaper but less expansive type of medical malpractice insurance. Claims-based policies provide coverage based on the time of the incident and the time of the claim. If either of these events occurs during a time when the policy was not insuring the doctor, the policy will not take effect. Using the same example as above, since the claim was made after the policy expired, the policyholder would not be covered. This type of insurance is often cheaper and is available in more states across the U.S. than occurrence insurance.

Tail and Nose Coverage

Tail and nose insurance coverage is an important type of malpractice insurance that covers doctors who are in between policies. When medical professionals are in transition between different practices or employers, they need coverage for any claims made against them in the interim. Tail coverage is purchased from the previous carrier, while nose coverage is purchased from the new carrier. Doctors usually choose one or the other, not both. Having either tail or nose coverage ensures any claims made by patients from a previous practice are still covered, even when the doctor is at a new practice.

Errors and Omissions Insurance

Insurance agents and adjusters need insurance too. Though they are the ones supplying the medical malpractice insurance, they need to have their own professional liability insurance that covers their practice. The nature of medical malpractice and negligence claims are complex, and all parties involved have a stake in the matter, including those who provide the insurance.

These are just a few types of common malpractice insurance, but there are many ways to customize your policies with your insurance provider. If you have any questions about malpractice insurance or your current malpractice policy, reach out to an insurance agency.

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