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Physician Contract Glossary · Malpractice & Insurance

Occurrence Policy

An occurrence malpractice policy covers any incident that happened during the policy period regardless of when the claim is filed, so no tail is needed.

An occurrence policy covers any incident that took place while the policy was active, no matter when the claim is actually filed, even years after you leave. That means no tail coverage is ever required. It costs more per year than claims-made, which is why it is less common, but it eliminates the departure tail risk entirely and is genuinely simpler to leave behind.

WHAT TO WATCH FOR

If you are offered occurrence coverage, recognize the value: no tail liability when you leave. When comparing to a claims-made offer, factor the future tail cost into the comparison, not just the annual premium.

Related terms

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