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Physician Contract Glossary · Malpractice & Insurance

Claims-Made Policy

A claims-made malpractice policy covers a claim only if both the incident and the filing happen while the policy is active, so it requires tail coverage when it ends.

A claims-made policy only pays if both the incident and the claim filing occur while the policy is in force. The moment the policy ends, claims for past incidents are no longer covered unless you buy tail coverage. It is the most common policy type in private practice because it is cheaper year to year, but that lower premium hides the tail cost waiting at departure.

WHAT TO WATCH FOR

If your coverage is claims-made, the tail question is unavoidable. Settle in writing who pays the tail premium when you leave, because that one line can be worth one and a half to two times your annual premium.

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