When it comes to dental malpractice coverage, is it better to have an occurrence policy or a claims-made policy?

Posted in Claims Services on Tuesday, February 21, 2017

When it comes to dental malpractice coverage, is it better to have an occurrence policy or a claims-made policy?

When asked this question, PSIC representatives will respond that both occurrence and claims-made policies have advantages and disadvantages.

Our representatives will go on to explain that if you are deciding between an occurrence policy and a claims-made policy, you should evaluate your individual circumstances – now and in the future – and consider the following about each policy type:

Occurrence

Occurrence coverage protects you against claims for alleged incidents that occur while the policy is in effect. Even if the policy later expires or is canceled, the coverage will be there to protect you for the period the policy was in force.

This is important because many times a patient can file a lawsuit months or even years after an incident took place. Coverage will be provided at the limits of liability, terms and conditions in effect at the time of the alleged injury.

Claims-Made

Claims-made coverage protects you against claims-made and reported by you during the policy period. Coverage is provided at the limits of liability, terms and conditions in effect at the time the claim is reported.

If you cancel a claims-made policy, it is recommended that you obtain tail coverage to provide coverage for claims for alleged incidents that took place but were not reported while the policy was in effect.

As is standard in the industry, tail coverage may not be available if the claims-made policy cancels for nonpayment of premium, giving rise to a gap in coverage.

Why does PSIC offer both occurrence and claims-made coverage when some insurers offer only one option?

PSIC believes in offering you the choice to customize your coverage to suit your own special needs and situation.

To learn more about our dental malpractice coverage options, take a look at our Dental Program Highlights or contact a PSIC Dental Program Representative.