A Guide to 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. It’s one of the most important things to look for in an insurer. 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. For a nurse practitioner medical malpractice insurance quote, click here.