Navigating the intricacies of malpractice insurance might seem daunting, especially as you're just starting your practice. But fear not, for Florida Dental Association Services is here to guide you through the labyrinthine world of insurance policies, specifically, the difference between Claims-Made and Occurrence Policies.
Firstly, let's establish common ground. Both policies offer legal defense for covered malpractice claims and cover damages resulting from such claims. Now, let's delve into the nuances:
Occurrence Policies: Picture this as a safety net spread over the timeline of your career. An occurrence policy covers claims arising from services provided during the policy period, even if the claim is made years later. For instance, if you perform a procedure today and get sued five years down the line, your occurrence policy at the time of the procedure steps in to assist. This is the best policy if you are not in your permanent practice situation because it is very portable and can be canceled without having to purchase a “tail policy”.
Benefits? It's straightforward and provides peace of mind, knowing you're covered for incidents throughout your career. But brace yourself for the higher upfront costs because this safety net extends far into the future. Also, remember, it won't cover services rendered before you obtained the policy.
Claims-Made Policies: These policies are more concerned with when the claim is made rather than when the incident occurred. If a claim is made during the policy period, your insurance applies, but there's a catch. You need to ensure your prior acts are covered by setting an appropriate retroactive date. This retro date should ideally coincide with the start of your practice, ensuring coverage for incidents from the outset of your career. Many policies will provide free “tail” coverage upon retirement from dentistry.
Benefits? It's typically less expensive initially, ideal for budget-conscious beginners. It is also great for providers that are settled into their practice “home”. However, there are more considerations and actions required, such as maintaining continuous coverage and purchasing tail coverage if you decide to pause your practice.
So, how do you choose? Consider your current coverage, budget constraints, and career plans. Stick to what you have if it suits your needs or switch to save money, but be prepared for additional management and costs down the line. If you are new to practice and unsure of your future career plans, occurrence is the way to go.
In conclusion, whether you opt for Claims-Made or Occurrence, having malpractice insurance is non-negotiable. It's your shield against the financial repercussions of malpractice claims. Choose wisely, and may your dental journey be filled with successful smiles and protected practices.
Need more insurance guidance? Set on purchasing a policy? Reach out to us today for individualized insurance support: https://fdaservices.com/