What defines a claims-made coverage in relation to medical malpractice insurance?

Claims-made coverage in medical malpractice insurance is characterized by providing protection for claims that are made during the policy period, regardless of when the incident that led to the claim occurred. This means that if a claim is filed against a healthcare provider while the policy is active, the insurance will respond to that claim, even if the alleged malpractice event took place prior to the start of the policy, as long as it was after a specified retroactive date.

This type of coverage emphasizes the importance of maintaining an active policy, as coverage may be lost if the policy lapses and a claim arises after the expiration date but relates to incidents that occurred when the policy was in effect. This contrasts with occurrence-based policies, which cover any claim related to incidents that occurred during the policy period, regardless of when the claim is filed.

Understanding claims-made coverage is essential for healthcare providers to ensure they have the necessary protection and are aware of the implications of their policy's terms, especially regarding the potential for claims that may arise after a policy has lapsed.