Occurrence Policy - Physician Contract Glossary

Occurrence Policy

Definition

Malpractice insurance that covers any claims resulting from incidents that occurred during the active policy period, regardless of when the claim is filed.

Examples in Context

“This agreement requires the physician to maintain an occurrence policy providing malpractice coverage for all incidents arising during employment, regardless of when claims are reported.”

“The Employer shall ensure that the Physician's occurrence-based policy provides coverage for any professional services rendered during the course of employment.”

Implications for Physicians

• Provides long-term protection for incidents that occur during employment.
• Reduces the need to purchase costly tail insurance upon leaving the position.
• Premiums are generally higher than claims-made policies but avoid future expenses.

Negotiation Tips

• Ask if your employer offers an occurrence policy as an alternative to a claims-made policy.
• Evaluate total costs over time to compare occurrence vs. claims-made with tail coverage.
• Ensure the policy limits meet hospital and employer requirements.

Red Flags and Pitfalls

• Occurrence policies may have higher upfront costs, which may strain new practices or smaller employers.
• Coverage limits may be insufficient to meet some hospital credentialing requirements, so confirm the specifics.

Related Terms

• Tail Insurance
• Professional Liability Insurance
• Claims-Made Policy

FAQs

• “Do I need tail insurance with an occurrence policy?”
  • No, an occurrence policy covers incidents during your employment period even if the claim is filed after you leave.
• “Why is an occurrence policy more expensive upfront?”
  • Because it eliminates the need for separate tail insurance, insurers charge more to cover future claims.
• “Is occurrence coverage always available?”
  • Not always. Some employers may only provide claims-made policies to reduce costs.

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.