Having liability insurance that covers you when you need it most is essential. As a doctor of chiropractic in a lawsuit-inclined world, securing the correct coverage can mean the difference between a long-lasting business and one that fails. The expenses that one can incur during even the most straightforward kind of lawsuit have the potential to bankrupt a business. As you go about your research of different chiropractic insurance programs, make sure that you fully understand the impact of having claims made versus occurrence form coverage.
The difference between occurrence form and claims made coverage is critical to understand before you purchase your chiropractic liability insurance. The most significant takeaway is that occurrence form coverage is preferred in the industry.
To provide you with an example, say that you are covered by an occurrence form policy from January to December of a given year and do not renew your policy. If a client sues you the following July for an incident or injury that occurred between January and December when you were insured with occurrence form coverage, you will be covered by the occurrence form insurance policy. If you are covered for a given year and a claim is made at a later date that relates to that same year you were covered, occurrence form coverage will protect you.
HOWEVER, if you are covered with claims made coverage between January and December of a given year and do not renew your policy the following year, if your client sues you the following July for a prior January-December event during which you were insured, you will not be covered with your claims made policy and you will have to pay out of pocket. When you opt for claims made coverage, if you do not renew your policy, a lawsuit stemming from an event in the previous year that you were covered by insurance will not be covered by claims made coverage.
You want to have the maximum protection available from a chiropractic insurance provider, and you want to take on the least amount of personal, business, and financial risk possible. Make sure that when you make this important decision, you fully understand the risks and rewards. While you will no doubt plan for the best outcomes for your business, having the best plan in place—along with the most solid chiropractic insurance—is a great way to guarantee a bright future.