Starting off your career as a doctor with your own private practice? If so, it is important that you are protected by having a medical malpractice insurance policy. This type of insurance can help you out financially if you were to be sued by one of your patients. However, there are multiple types of medical malpractice insurance, and it is important to buy the right policy that has the right coverage for your needs. Here is what you need to know about the three main types of coverage.
One of the most expensive types of medical malpractice insurance is for occurrence coverage. This type of policy will cover you from any medical malpractice claims during the time that you have an active policy. However, the main benefit is that you will continue to have medical malpractice coverage if you were to cancel the policy.
Occurrence coverage is a great type of policy to have if you are just starting your practice. It is difficult to be sure if you will be successful, and if you end up having to close your practice prematurely, you'll need to have some sort of malpractice insurance for claims made after you are no longer working. Being out of business doesn't mean that you can't be sued, and that is why occurrence coverage exists. You can stop making the payments and still be covered for the time you were in business.
Another type of policy is called claims-made coverage. This type of insurance works just like your home or auto insurance since it only covers you for the time that you are paying for an active policy. There is no coverage for incidents before the policy, and no coverage after you cancel the policy. It is more affordable to have, but you could be at risk of being responsible for a malpractice lawsuit if you cancel the policy.
Prior Acts and Tail Coverage
Having prior acts and tail coverage helps pick up the gaps where claims made coverage will not cover you. This can be great for if you are switching medical malpractice insurance providers from an old claims made policy, and need coverage for that time before your current policy. You can also purchase tail coverage to protect you from lawsuits after the policy ends for a specific amount of time.
Work with a medical malpractice insurance provider for more information about the three types of coverage.