What Are Claims-Made, Occurrence and Modified Occurrence Policies?
Malpractice policies can be categorized into three groups: claims-made, occurrence and modified occurrence policies. The difference between these groups is what claims they cover.
Claims-made policies generally only cover incidents if they both occur and are reported within the policy’s effective period. An incident that occurred before the effective period or was reported afterward often isn’t covered under a standard claims-made policy. (These policies may have an option to purchase “tail coverage,” which is typically an optional coverage that extends the window for reporting claims beyond the end of the policy’s effective period. If this coverage isn’t selected, though, usually only claims filed within the effective period are covered.)
Occurrence policies normally extend the reporting period beyond the end of the policy’s effective period. They’ll typically cover incidents that occur during the policy’s effective period even if they aren’t first reported during the effective period. There often is a limit on how long after the effective period’s end an incident can be reported, though.
Modified occurrence policies usually combine features of claims-made and occurrence policies to offer robust coverage terms. These policies frequently come with tail coverage included, so they’ll normally cover claims that are reported after the policy’s effective period expires. Additionally, unlimited tail coverage is often available as an optional protection for professionals who could be liable for incidents that don’t have any statute of limitations.
How Can Professionals in Worcester, MA Get Quotes for Malpractice Insurance?
Professionals in Worcester, MA who’d like quotes for malpractice insurance should contact an independent insurance agent who’s licensed in Massachusetts. An independent agent can help professionals determine what type of malpractice liability insurance policy they should look for, and an agent can request quotes for such a policy from several insurers in the state.