Claims-Made Policy - Physician Contract Glossary
Claims-Made Policy
Definition
Malpractice insurance that covers claims only if they are filed while the policy is active.
Examples in Context
"Physician is insured under a claims-made policy effective from the start of employment until termination."
"In the event the Physicianā€™s employment ends, the Employer shall require the Physician to purchase tail insurance to cover claims arising after contract termination."
Implications for Physicians
- Requires purchasing tail insurance to remain protected if a claim is filed after you leave.
- Often less expensive initially compared to an occurrence policy, but may involve costly tail insurance later.
Negotiation Tips
- Negotiate for your employer to pay for tail insurance upon termination.
- Ask if the policy automatically includes an extended reporting period.
Red Flags and Pitfalls
- Leaving a position without purchasing tail insurance may leave you unprotected from lawsuits filed later.
- Gaps in coverage can occur if you switch employers before securing new insurance.
Related Terms
FAQs
- "What happens if I leave my job without tail insurance?"
- You may be liable for claims filed after your employment ends without any insurance protection.
- "Is a claims-made policy always cheaper?"
- Yes, in the short term. However, tail insurance can be expensive, potentially offsetting the initial savings.
- "Can I switch to an occurrence policy later?"
- Yes, but ensure there are no gaps in coverage during the transition period.
Legal Disclaimer
The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.
For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.
You can find experienced legal professionals through our Physician Contract Lawyer Directory.