Understanding Medical Malpractice Policies: An Overview

Medical malpractice insurance is a critical part of practicing medicine, making it essential for physicians beginning their practices to have an understanding of the types of malpractice policies available. The two primary categories are occurrence coverage and claims-made coverage.

Occurrence policies provide coverage for events insured during the specified policy period. This is the more expansive and expensive of the two main types of policies since there is no cap on the amount of time that passes before a claim is made. The American Academy of Actuaries specifies that occurrence policies offer the broadest model of coverage. Consequently, such policies are riskier for insurers and the most expensive for policyholders.

Claims-made policies provide coverage for insured events as long as two conditions are met: (1) The insured event has occurred, and (2) the policyholder reports the event within the specified coverage period. Premiums for claims-made policies are much more reasonable than the premiums for occurrence policies. Physicians can obtain separate and additional coverage to claims-made policies through tail coverage, which provides coverage for claims reported after the policy has expired or been canceled. Nose coverage protects physicians for events that took place before a policy took effect.

Many new physicians find navigating medical malpractice insurance overwhelming and policies to be expensive. One of the great advantages of locum tenens assignments made through staffing agencies is that malpractice insurance is provided for the duration of the assignment. Many physicians find it desirable to defer such weighty matters associated with permanent practice while they explore temporary assignments immediately after their residencies.

To find out more about the benefits of locum tenens work, contact Medicus Healthcare Solutions at 855.301.0563 to speak with one of our experienced recruiters.

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