The Benefits of Occurrence Insurance

Medical professionals study and work for years to enter the prime of their careers. But what happens when something goes wrong with a patient? A physician could lose financial security and their reputation. That’s where insurance policies come in—they provide financial and legal support. Here are the benefits of occurrence insurance.

Long-Term Protection

The two main kinds of malpractice insurance are occurrence and claims-made policies. Occurrence insurance offers several unique benefits. One of the most considerable upsides to an occurrence policy is long-term protection. Under the terms of a typical occurrence policy, medical professionals maintain coverage for past events taking place during their policy. Even if they no longer pay for the policy or switch insurance providers, they will have coverage. This protection is especially helpful when a patient waits several months or years to file a claim and the physician no longer has that specific policy.

Fixed Premiums

While the cost of a premium depends on the insurance company agency, medical professionals can expect their premiums to stay the same if they purchase an occurrence policy. Sometimes, premiums increase or decrease based on external factors that policyholders can’t control. However, occurrence policies are different, and the monthly payments won’t change as long as the risk profile for the medical professional doesn’t change—such as a change in location, job, or role. For example, a chiropractor who decides to move states and start their own practice will need a new policy. But if they have an occurrence policy like our chiropractic malpractice insurance at Baxter & Associates, they won’t have to worry as they make their career change.

Simpler Transition

Since an occurrence policy covers policyholders long after they stop paying for coverage, it’s much easier for professionals to move to a new state or start a new job where they need a new policy. During such transitions, someone with a claims-made policy would need to purchase tail coverage in addition to their current policy if they want total coverage.

Knowing the benefits of occurrence insurance helps medical professionals in all fields feel safer. No one wants to take on unnecessary risk. Reach out to us at Baxter & Associates today for more information.

The Basics of Prior Acts Coverage

As a nurse practitioner, you may transition between jobs and locations throughout your career. While this is an exciting adventure, it does bear certain professional and legal implications. Here are the basics of prior acts coverage.

What Is Prior Acts Coverage?

Prior acts coverage is a kind of insurance policy add-on or feature that insurers offer for extra protection. For example, when anyone with a liability insurance policy, such as a malpractice insurance plan for nurse practitioners, changes their job, they will need a new insurance carrier. The new policy will cover all the insurable events within the agreed-upon timeframe. However, insurers will not cover the events that fall before the new policy without unique additions like prior acts coverage.

Why Is It Important?

Prior acts coverage is an essential detail to cover, especially for medical professionals. Suppose a physician made a treatment error at their previous job before their current policy began. The client realized the mistake and filed a claim in the legal system. Since the event happened before their current policy took effect, they could be held liable for all legal fees and financial compensations. Prior acts coverage insures the policyholder against these past claims.

How Can You Find It?

When you look for a new insurer that can cover your new position or location, you should ask about prior acts coverage. Not all carriers provide this feature, and it is essential to read the fine print. The agreement will have certain specifications about what qualifies as an insurable event in the past. Consider asking your colleagues or new employer about the best options available and cover yourself fully before any claims come your way.

Knowing the basics of prior acts coverage can prevent you from making any career-threatening mistakes. If you have any questions about prior acts coverage or are looking to add it to your professional liability policy, reach out to Baxter & Associates today.

Understanding Error and Omissions Insurance

Error and omissions insurance sounds like an ominous policy to take out. What even is it, and why would you need this kind of coverage? Well, here is a quick guide to understanding error and omissions insurance.

What Is Error and Omissions Insurance?

Every business relies on human ingenuity and drive. However, that same human presence can also be the downfall of an organization. We all make mistakes, errors, and omissions in our work accidentally. Error and omissions insurance, or E&O insurance for short, covers many of our common oversights.

Suppose you neglected treatment with a patient, incorrectly audited someone’s financials, or misrepresented your client—all these situations would require an E&O policy to protect the business that made a mistake.

Why Do You Need It?

Imagine each of the scenarios above happening in your workplace. For example, if you gave inaccurate financial advice to a client who trusted you, there could be devastating ramifications in their portfolio. Should your direct oversight or negligence lead to a client’s suffering, they could file a claim.

In the event that a patient or client files a claim, you will want an insurance policy to provide legal support and financial cushioning. If the claim falls within the parameters of your policy, you will have the full support of an entire agency behind you.

Who Should Get an E&O Policy?

What do lawyers, doctors, business owners, insurance agents, and accountants all have in common? High-stakes financial and professional relationships with their customers. If you wonder whether you need error and omissions insurance, you should look into it more.

For example, if you are an insurance agent, you should definitely get an insurance agent’s errors and omissions insurance policy. This policy will protect you from the legal consequences of data breaches, vicarious liability, and negligence claims.

Understanding error and omissions insurance can take time and leave you with many unanswered questions. If you have further inquiries into E&O insurance, reach out to us at Baxter & Associates today. We can help you find the coverage you need.