Occurrence Form vs Claims Made Malpractice Insurance
Occurrence form malpractice insurance and claims-made malpractice insurance are two different types of policies that protect healthcare professionals against liability from claims of malpractice. Occurrence form insurance covers incidents that happen during the policy period, regardless of when the claim is filed. This means that if an incident occurs while the policy is active, the therapist is covered, even if the claim is reported after the policy has expired. This type of insurance provides long-term security as it doesn't depend on the claim's reporting time.
On the other hand, claims-made malpractice insurance only covers claims that are both incurred and reported while the policy is in effect. This means that the policy must be active when the malpractice incident occurs and when the claim is filed. If a policy is canceled or lapses and a claim is made afterward for an incident that occurred during the policy period, there would be no coverage unless a "tail" coverage (extended reporting period) is purchased. Claims-made policies can be less expensive initially but may require additional investment in tail coverage to maintain protection after the policy ends.
Occurrence Form: Any claim filed after the policy expires will still be covered, as long as the incident took place while the policy was active.
Claims Made: Any claim filed after the policy expires will not be covered.
The first year I had insurance, nothing happened. I thought, “what’s the point of spending the money if I am not going to use it?” Then I had a client come in complaining about reaction to her treatment. That’s when I realized I needed insurance, and I am grateful to having Insurance Plus.
Gainesville, FL
Get Occurrence Form Coverage with Massage Magazine Insurance Plus!
Get Occurrence Form Coverage with Massage Magazine Insurance Plus!
The first year I had insurance, nothing happened. I thought, “what’s the point of spending the money if I am not going to use it?” Then I had a client come in complaining about reaction to her treatment. That’s when I realized I needed insurance, and I am grateful to having Insurance Plus.
Gainesville, FL
The first year I had insurance, nothing happened. I thought, “what’s the point of spending the money if I am not going to use it?” Then I had a client come in complaining about reaction to her treatment. That’s when I realized I needed insurance, and I am grateful to having Insurance Plus.
Gainesville, FL
Additional Information
Occurrence Form Policy
Occurrence Form policies only need to be active when the incident in question occurs to trigger coverage, regardless of when it’s reported. In other words, any claim filed after an occurrence policy expires will still be covered, as long as the incident took place during the policy term.
Example: Your occurrence policy expired on Nov. 30, and you did not renew it. One of your clients experienced bruising after his acupressure session on Oct. 30, at which point you were insured. The client does not file a claim, however, until Dec. 30. You report the claim to your insurance provider and find out that you’re covered—even though your policy expired a month ago!
Get Occurrence Form Coverage with Massage Magazine Insurance Plus!
Claims-Made Policy
Claims-Made policies must be active when the claim is reported in order to trigger coverage. In other words, any claim filed after a claims-made policy expires will not be covered, even if the incident in question took place while the policy was active.
Example: Your claims-made policy expired on Nov. 30. One of your clients experienced pain after her deep-tissue session on Oct. 30, at which point you were insured. However, the claim isn’t filed until Dec. 30, a month after your policy expired. You report the claim to your insurance provider only to find out that you’re not covered because the claim was made after your policy term.
Claims-Made Policy + Tail Coverage
Tail coverage, also known as extended reporting period (ERP) coverage, responds to incidents which occur during the policy term but are not reported until after the policy expires. Claims-made policyholders may purchase tail coverage in order to extend their reporting period once it ends. On average, tail coverage costs two times more than the original term cost at the time of expiration.
Example: Your claims-made policy expired on Nov. 30, and you purchased tail coverage. One of your clients filed a claim on Dec. 30, regarding a massage session you performed on Oct. 30. You report the claim to your insurance provider and find out that you’re covered—even though the claim was reported after your policy expired!