What is the difference between claims-made and occurrence?
Occurrence coverage provides protection for professional services rendered while the policy is in effect, regardless of when the patient files a claim. Even after you stop practicing, your occurrence policy will still provide you and your estate with coverage for the professional services you provided during the policy term. There is no need to purchase “tail” coverage. Claims-Made coverage is based on when the act is reported (when the claim is actually made). Claims-made policies provide coverage for claims, which are reported to the insurer while the policy is in force. The policy covers professional services rendered on or after (1) the policy inception date or (2) an earlier retroactive date. Due to cancellation or non-renewal, an additional premium to purchase an Extended Reporting Endorsement, commonly called “tail coverage”, may be required to provide protection for claims reported after the final claims-made policy’s termination date.
