Should a Physician Choose Claims Made or Occurrence Malpractice Insurance? | Chelle Law

bursa cpns - hi my name is RUby and i'm 
an attorney that assists physicians  

in getting better employment contracts without 
getting taken advantage of by their employer  

one question i get quite often is if given the 
choice between uh purchasing an occurrence based  

professional liability insurance policy or 
claims made policy which one should i take  

uh to be honest it doesn't happen very often 
where the employer would give the employee  

that choice however i did have a client where 
the employer said you can choose whether you  

have an occurrence based policy or a claim to me 
policy but if you choose the occurrence policy  

then you have to pay the difference in the annual 
premium between what claims made would have been  

and what the occurrence based policy would be 
an occurrence based policy is about 35 percent  

more expensive on an annual basis than a 
claims-made policy it's more expensive because  

you do not need to purchase tail insurance uh 
if you're on a currency-based policy where with  

claims made insurance you do tail insurance is 
about two times what your annual premium would be  

if you had a claims made policy so 
if you had like a six thousand dollar  

uh annual premium for your malpractice insurance 
your tail costs would be around twelve thousand  

uh so at some point it's just a math equation uh 
for people that plan to be with an employer for a  

short period of time uh it probably makes 
sense to get the occurrence based policy  

uh you know i i have clients that know going in 
that they're only going to be with an employer  

for a year or two in that case it definitely 
makes sense to get a current space policy  

if they plan to be with an employer for five 
or ten years then claims made no doubt would be  

the better financial decision anyway it 
really all depends upon specialty and length  

of employment what's the risk a version of the 
physician anyway we made a cheat sheet you can  

download that in the description and if you have 
any questions please contact my office take care