As you may already know, professional liability insurance is available in two forms – occurrence or claims-made. Although both provide protection, there are major differences between the two and selecting your policy type is one of the most significant decisions you’ll make when buying professional liability coverage.
Occurrence
Occurrence coverage responds to a claim based on when the dental treatment occurred, regardless of when the claim is actually made against you. As long as the incident occurred during the policy period, your occurrence policy will respond according to the terms and conditions of the policy — even if the claim is made after the policy period expires. For example, if a claim is made in 2012 based on treatment rendered in 2010, the 2010 occurrence policy responds.
With occurrence coverage, you receive a separate set of limits every year you have the coverage.
Claims-Made
Claims-made coverage, by contrast, responds to claims based on when the claim is made against an insured. For example, if a claim is made in 2012, based on treatment rendered in 2010, the 2012 claims-made policy responds, as long as the incident occurred after the policy’s retroactive date. The policy’s retroactive date is the date after which treatment must occur to trigger coverage.
Because claims-made policies do not cover claims made after the termination of the policy, you must secure “tail” coverage (an extended reporting endorsement) at the termination of the policy.
To learn more on occurrence vs. claims made and take our quiz on which is right for you please visit: http://www.medpro.com:80/web/ppdjk0gr/home
