Medical-Professional Liability Insurance
Claims-Paid or Claims-Made: Who Cares?
You might, to avoid expensive tail coverage handcuffs
Claims-paid vs. claims-made may sound like so much insurance industry mumbo-jumbo. But this seemingly subtle distinction could end up costing you a lot of money, and handcuff you to a carrier whose rate changes may not be in your best interest.
Here are 3 important things your should know about Claims-Paid vs. Claims-Made:
- Claims-Paid Handcuffs. A claims-paid policy restricts physicians/groups from leaving their current carrier if there is an open claim, or in some cases, the possibility of a claim being filed.
- No Shopping Zone. Claims-paid coverage also binds you to your current carrier’s rate changes until you are allowed to leave. Your ability to consider comparison pricing is severely restricted.
- Carrier/institution type. Be sure you understand what type of carrier or institution is offering you coverage. Alternative risk carriers – trusts, co-operatives and Risk Retention Groups (RRG) often offer claims-paid policies. Before buying or moving, make sure you know who’s covering you and whether it is a claims-paid or claims-made coverage form.
Small things can make a big difference.
"With their specialized contract and physician-only focus, MGIS' expertise and depth of experience is unparalleled. And they have legitimate statistics to back up a long history of physician claims being paid."– Client Survey Response