- Understand the difference between a claims made policy and an occurrence policy, and which is the right fit for your practice.
- Claims Made Policy: This provides coverage for insured events occurring on or after the specified policy’s retroactive date, when the insured events are reported during the policy period. After the policy is terminated, it is important to purchase tail coverage to make sure that you are covered during the period of time that your claims made policy was in force. Since a claims made policy is only in force during the policy period, a tail policy will cover the period of time that your claims made policy was in effect until the claims made policy was terminated.
- Some physicians are required to purchase their own tail coverage when leaving a position at a hospital. Many times the hospital will cover your medical malpractice insurance expenses while you are working at the hospital, but will hold the individual physician responsible for their own tail coverage.
- Occurrence Policy: This type covers insured events that occur during the policy period, even after the termination of the policy, so long as the incident takes place during the period of time that the policy is in force. An occurrence policy functions similar to a claims made policy and tail policy combined, which negates the need to purchase a tail policy on top of your existing occurrence policy. Because of this, an occurrence policy is generally more expensive than a claims made policy. Make sure to talk to your Madison representative to make sure you have a policy that fits the specific needs of your practice.
- Limits desired: In many areas of the country, the standard is one million per incident and three million aggregate. Your limits can be changed based on the amount of risk you are willing to take, but since medical malpractice insurance is required by law in many states, limits cannot go lower than the legal limits in your state.
- Some companies will offer financing options to bring the initial cost down.
- Available discounts: Depending on your situation, you could be eligible for discounts through various carriers. Carriers will sometimes offer discounts for new-to-practice physicians, physicians who are claims free, special training and risk management discounts, discounts for part-time physicians, etc. The number of discounts that are available to you are going to be specific to each healthcare practitioner. In order to find out which discounts you qualify for, talk to your Madison broker.
- Carrier financial Rating: Each Medical Malpractice Insurance carrier will have an A.M. Best financial rating that reflects the financial strength of the carrier writing your policy. The financial strength of the carrier will be important if a claim is ever brought against you or your practice.
Make sure to speak with your Madison representative if you have any questions about your existing policy, or if you need to make any changes to your policy.
