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Won't my employer’s policy cover me?

Even though you may be covered under an employer’s policy, this does not clear you from risk. You may still be liable for you own negligence, and as a result, all or part of a plaintiff’s award or settlement. You may even be required to compensate your employer for damages paid to a claimant. You can either retain this risk or buy insurance that transfers it.

The only way to ensure that you're covered for your professional acts is to have your own policy, issued in your name. Your policy will provide you with limits of liability that meet your professional needs. And, because the policy is issued in your name, many possible conflicts of interest between you and your employer may be eliminated in the event a claim is filed. 



How are my rates determined?
The policy premium is typically based on the following factors: the profession involved and the likelihood of a claim being brought, the potential severity of the claim, the number of years in practice, the number of professionals covered, annual revenues, location of the business and claims history.

Your premium can also be affected by the choices you make regarding your policy. For example, the limits of coverage you select have a direct bearing on the amount of your premium.



What should I consider when choosing coverage limits?

Limits in terms of minimums and maximums often vary by state and are typically calculated per occurrence with an annual aggregate. You can expect the higher your coverage limits, the higher your premium is likely to be.

When dealing with professional liability insurance, you may be able to add an additional $1,000,000 or $2,000,000 of coverage for a minimal increase in your premium payment. Therefore, based on your individual needs, it may be worth considering the maximum limits offered for your policy, rather than simply selecting the most inexpensive premium available.



How does Claims Made coverage work?

A claims made policy protects you against incidents that arise from treatment provided after your policy’s retroactive date and are reported while your policy is in force. Your retroactive date usually reflects the date your policy started. As long as you continuously renew your claims made policy, you may report claims for incidents that occurred in previous policy years, back to the beginning of your claims made coverage.

Example of Claims Made Policy Coverage — You became a Claims Made policyholder in 1995 and have renewed your policy continuously since then, with no lapse in coverage. A patient you treated in 1997 files a claim against you now. Because you have renewed your policy continuously since 1995 and it is currently in force, you are still protected for that 1997 incident.

Benefits— 1. With a Claims Made policy, the only insurance carrier you need to be concerned with is your current carrier. Instead of being sued and trying to figure out which former occurrence policy was covering you the year incident occurred and hoping that carrier is still financially viable to defend your claim, all claims brought are handled by your existing Claims Made policy regardless of when the incident occurred, pursuant to your retroactive date.

2. The premiums in the initial years of a Claims Made policy are generally less than those of an Occurrence policy offering similar coverage. In general, a Claims Made policy will save you money over an Occurrence policy after just three years.

Limits of Liability — With a Claims Made policy, the limits of liability in effect when the claim is made are the limits that apply toward any settlement or judgment.

Example of Limits of Liability — In 1995 your Claims Made policy had limits of liability of $100,000/$300,000. Then, in 1998, you increased your limits to $1 million/$3 million. Also in 1998, a patient you treated in 1997 files a malpractice claim against you. Which limits of liability apply? The $1 million/$3 million limits of the current policy year apply because those are the limits in place when you reported the claim.



What are tail coverages for Claims Made policies?

Tail coverage is optional protection that allows you to report claims after your policy has ended for alleged injuries that occurred while your policy was in force. It is necessary only if you discontinue your Claims Made policy.

Extended Reporting Period — If you decide to discontinue your Claims Made policy, tail coverage is available to extend your claims reporting period.

Cost — Tail coverage is a one-time fee that’s calculated as a percentage of your annual premium. When you purchase tail coverage, your policy’s existing limits of liability are reinstated and are extended for a specified period of time to pay claims reported in the future.
Benefit — Tail coverage is a great way to protect yourself from the unexpected sting of future claims, and will provide you long-term protection and peace of mind.

Example of Tail Coverage — In 1995, you purchased a Claims Made policy. In 1997 you discontinued your policy and purchased tail coverage to extend your claims reporting period. In 1999, a patient you treated in 1996 files a malpractice claim against you. Subsequently, because you purchased tail coverage when you left, you may report that claim in 1999 for the 1996 incident.

 
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Offered by:



Forrest T. Jones & Company, Inc.
P.O. Box 418131
Kansas City, MO 64141-8131

Underwritten by:



Lloyd's of London
An A.M.Best "A"-rated carrier

Administered by:

Hays Companies
80 S 8th Street, Suite 700
Minneapolis, MN 55402

 
 
 
 
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