Occurrence vs Claims-Made Medical Professional Liability Insurance Policies

Abstract

DECISIONS regarding medical professional liability insurance, also known as malpractice insurance, require an understanding of the fundamental differences between the two types of insurance coverage available to physicians. In addition to a discussion of the distinctions between the basic types of coverage, this article will detail several coverage problems that physicians can encounter. <h3>Occurrence Coverage</h3> Two basic types of medical professional liability coverage are available: occurrence and claims-made. The concept of occurrence coverage is relatively straightforward: occurrence policies cover a physician (ie, the insurer will defend the physician and pay out, if necessary, on claims that are asserted against the physician) for claims arising from incidents that occurred during the period of time the physician was covered by the policy. An<i>incident</i>(also variably called a<i>medical incident</i>) is typically defined by insurers as an act or omission that causes injury or damage to another and that arises during the