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.

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