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
