For more than 15 years, Rory Rineer has owned and operated Professional Liability Agency in Harrisburg, Pennsylvania. In this role, Rory Rineer oversees the sourcing and selection of medical malpractice policies for health care professionals in Pennsylvania, New York, and New Jersey.
Medical malpractice insurance is typically available on two forms. The most prevalent is the claims-made policy, which covers events that occur and are reported to the insurer while the policy is in effect.
Because both event and claim must fall within the policy's coverage period, many practitioners who switch policies elect to purchase tail coverage from the prior insurer. This extends coverage for claims made on an event that allegedly occurred during the period in which the prior policy provided coverage. Another option is to purchase prior-acts or “nose” coverage from the new insurer, so that the new policy covers events that occurred for a certain period before the policy became effective.
A second form is occurrence coverage. The occurrence policy covers any claims on events that allegedly took place during the period of coverage, even if the claim occurs after the policy ends. This renders nose and tail coverage unnecessary, though it does require professionals to pay premiums based on not only current and prior practice but also projected liability.
