Five ideas explain most of what surprises practice owners at claim time. Here they are in plain words.
These are the two ways a policy decides which claims it answers.
| Claims-made | Occurrence |
|---|---|
| The policy in force when the claim is made is the one that responds. Most malpractice policies work this way. | The policy in force when the event happened is the one that responds, even years later. |
Why it matters: with claims-made, a gap in your policy can leave past care with nothing behind it.
On a claims-made policy, the retro date is the earliest date of care the policy looks back to. Care before that date is outside the policy. When you change carriers, keeping your retro date is what keeps your history protected.
A tail lets a claims-made policy respond to claims about past care after the policy ends. People usually need one when they retire, sell a practice or leave a group. It must be bought at the right time, usually when the policy ends.
A limit is the most a policy will pay. Most policies show two numbers, like $1M / $3M.
Landlords, hospitals and contracts often ask for a minimum.
An endorsement is a change added to your policy. It can add a service, a location, a provider, or a person who needs to be named on your certificate.
If you start something new, it usually needs an endorsement. Tell us before you start, not after.
This page explains common terms. Your own policy decides what it covers. If you want to know how any of this applies to you, ask us.
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