What is the effective date?
The effective date is the first day you want coverage to begin. If you are changing carriers, it will be the last day of your current policy. If you have not previously had coverage, it will be the first day you start to provide services.
What is the expiration date?
Policies are usually issued for a one-year period. In some instances, policies may be issued for a shorter term. Consult with your insurance agent to confirm this.
What is a retroactive date on a claims-made policy?
The retro date is 12:01 A.M. Standard Time at your address and date requested on the policy’s declaration page, which begins your coverage period. In most cases, the retro date is the first day the insured started providing professional services. It is important to verify your retroactive date to ensure you do not have a lapse in coverage.
Do I need retroactive coverage?
Retroactive coverage is needed on a claims-made policy. Without retroactive coverage, any procedures performed prior to the effective date will not be covered. Retroactive coverage, however, is not required for an occurrence policy.
What is claims made coverage?
Claims made coverage is coverage for claims resulting from injury occurring after the retro date, provided the claim is reported to the carrier while the policy is in effect.
What is the difference between occurrence and claims made coverage?
Occurrence Insurance refers to a policy that covers the insured for any incident that occurs while their policy is in effect, even if the occurrence is reported or becomes a claim after the policy period ends. A Claims-Made policy, on the other hand, only covers events that both occur and are reported within the insured period.
What if I have a claim?
Contact us immediately so our specialists can help you navigate the claims process and minimize any additional issues or problems that may arise.
Are you retiring soon??
Remember that when you retire you will mostly likely need a “tail” for your claims-made insurance policy. The “tail” of your policy will extend your policy with one liability limit covering the rest of the exposure window, which in Florida typically is four years or a child’s eighth birthday in birthing cases. Your normal comfort with a low limit policy may well be broken since the “tail” limit does not get “recharged” each year as in a typical policy purchased annually. Consider raising your limits the last year of your practice so that you can obtain a higher limits tail when you retire.
How can I get a free tail?
Yes, there is good news in this tail maze. Many companies offer provisions for free tail options. The standard in the marketplace today is that if you have been insured with the same company for at least five continuous years, and you fully and permanently retire from medicine you will receive a free tail. The least favorite ways to get a free tail from most insurers is in the case of your death or permanent disability. I advise that when you are within five years of retirement you focus on finding coverage with a company that you are confident will be firmly in the marketplace at least until your retirement so that the tail cost can be avoided. The vested tail issue can become contentious for groups with older doctors who are vested with free tails are less enthusiastic about losing their vested tails by switching the group coverage to insurers that might be offering lower rates.
