Claims Made vs. Occurrence: Which Malpractice Policy Should Physicians Choose?
- 6 days ago
- 2 min read
Choosing the right malpractice insurance structure is a critical decision for physicians and medical practices. Understanding the difference between claims-made and occurrence policies helps ensure you have the right protection against potential lawsuits and liability risks. While a personalised malpractice insurance quote provides exact pricing, knowing how these policies work can help you choose coverage that fits your practice and long-term career plans.
Below is a comparison to help physicians determine which malpractice policy may be the best fit.
1. What Is a Claims-Made Policy?
A claims-made policy provides coverage only if the policy is active both when the incident occurs and when the claim is filed. This structure typically offers lower initial premiums but requires continuous coverage to remain protected.
Key considerations include:
Premiums often increase over the first few years
Tail coverage may be needed when changing insurers or retiring
Coverage gaps can occur if policies lapse
Claims-made policies are common because they provide flexibility and lower upfront costs for many physicians.
2. What Is an Occurrence Policy?
An occurrence policy covers incidents that happen during the policy period, regardless of when the claim is filed. Even if a claim is made years later, the policy in effect at the time of the incident responds.
Benefits include:
No need for tail coverage
Long-term protection after the policy ends
Simpler coverage structure
However, occurrence policies typically have higher premiums compared to claims-made policies.
3. Cost Differences Between Policy Types
Claims-made policies usually start with lower premiums but may increase annually until they mature. Occurrence policies generally cost more upfront but provide permanent coverage for incidents during the policy period.
Physicians should evaluate their budget, career timeline, and risk tolerance when comparing costs.
4. Career Stage and Practice Type Considerations
Early-career physicians or those planning to change practices may prefer claims-made policies due to lower initial costs. Physicians planning long-term stability may benefit from occurrence coverage for its simplicity and extended protection.
Practice size, speciality risk level, and employment agreements can also influence which policy type is more suitable.
5. Importance of Reviewing Policy Details
Understanding exclusions, limits, and tail coverage requirements is essential before choosing a policy. Working with an experienced insurance adviser can help ensure your coverage aligns with your risk exposure and future plans.
Choose the Right Malpractice Policy With Confidence
Selecting between claims-made and occurrence coverage doesn’t have to be complicated. Wexford Insurance helps physicians evaluate policy options, compare carriers, and choose malpractice coverage tailored to their speciality, budget, and long-term goals.
👉 Request your malpractice insurance quote from Wexford Insurance today to protect your career, practice, and financial future with confidence.
