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      • Nurse Practitioner Malpractice Insurance
        • Claims Made Insurance for a Nurse Practitioner Explained
        • How Much Does Tail Insurance Cost for a Nurse Practitioner?
        • Occurrence Based Insurance for a Nurse Practitioner Explained
        • Should a Nurse Practitioner Choose Claims Made or Occurrence?
        • Tail Insurance for a Nurse Practitioner Explained
      • Nurse Practitioner Non Compete Clauses
        • How Many Locations Should a Nurse Practitioner Non Compete Apply To?
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        • 3 ways a physician can get out of paying for tail insurance
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        • How Much Does Tail Insurance Cost for a Physician Assistant?
        • Should a Physician Assistant Choose Claims Made or Occurrence Insurance?
        • Tail Insurance for a Physician Assistant Explained
        • What is Claims Made Insurance for a Physician Assistant?
        • What is Occurrence Based Insurance for a Physician Assistant?
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        • Why Veterinarians Do Not Need Tail Insurance
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Should a Nurse Practitioner Choose Claims Made or Occurrence?

Should a nurse practitioner choose claims made or occurrence-based malpractice insurance? If you’re working for a hospital or hospital network, they’re always going to pay for your underlying premium, so how much they pay for you on an annual basis, but it’s also very likely that they’re going to pay for any kind of insurance needed after the employment has terminated. Most of the big networks are now self-insured. Some of them may offer a claims-made policy, but they’ll almost always pay for tail. The only time or at least the most likely time that you’d have to make a choice between an occurrence-based policy, or a claims-made policy is if you’re either out on your own in a state that allows it, or perhaps you’re in a private practice working with the physician.

What are the differences between the two? Let’s take occurrence-based coverage first. An occurrence-based policy simply means that a policy has to be in effect when the malpractice occurs. So, it doesn’t matter when a claim is filed, you are covered no matter what if you have an occurrence-based policy. No tail insurance is necessary. For a claims-made policy, a policy has to be in effect when the claim is actually made. It’s possible a claim could be filed against you after the employment is terminated. So, you need a gap policy or also known as tail insurance, that covers the gap between when you leave an employer and then the last day somebody can sue you. It’s called the statute of limitations and in most states, it’s two years. There are a few exceptions, but let’s just take two years as a kind of guiding principle here.

And so, you would have to get an additional policy that covers that gap. And that’s, as I said before, called tail insurance. Now, let’s talk about cost. Tail is generally around twice what your annual premium is. Whatever that you pay on an annual basis, multiply those times two, and that’s a good estimate of what your tail costs will be. It’s a one-time payment, you don’t have to pay for it every year, but you can choose different policies that are different lengths that cover a different amount of time. You could get a tail that lasts for two years, three years, five years, indefinitely, and then the price would change a little bit based upon, obviously the longer, the more expensive it’s going to be. It does not make any sense to get a policy that doesn’t cover the full statute of limitations in whatever state you’re in. If you get sued and you’re not covered, then you could potentially be personally liable.

So, you always want to have backstop if you’re going to be sued for any kind of incident with any employer. And you want to make sure you have a long enough tail to cover you. Occurrence-based, as I said before, doesn’t need tail insurance, but it costs a little bit more per year. It’s about a third more expensive. Let’s say you were paying 3000 a year for your insurance. Well, if you had an occurrence-based policy, it’d be $4,000. So, not a huge price difference between the two, but in the end, it can be huge because as I said before, if you had a $3,000 annual premium for a claims-made policy, your tail would be $6,000. Whereas with an occurrence-based policy, it would be nothing. So, you really need to figure out how long you’re going to be with an employer to determine which policy is best for you.

Now, an NP normally is not given the option if you’re going to work for a physician-owned practice. They’re going to dictate what type of policy you get. And then they’re also going to dictate whether you must pay for tail or not. Now, that’s something you can negotiate in your employment agreement. You need to look at the policy about professional liability insurance. You need to see what type of coverage they have, who it’s with, how much it costs per year, and then who pays for tail insurance. Those are four things you absolutely need to figure out before signing any kind of contract. It’s not prohibitively expensive for an NP. I mean, let’s say you’re an FNP, it’s usually somewhere between 1500 to 2,500 a year. So, the tail cost would be somewhere between like 3,000 to 5,000. And it’s a one-time cost, as I said before. But still, $5,000 is not an insignificant amount of money.

And so, always having the employer being the one that foots the bill is obviously more favorable than not. So, that’s the difference between the two policies, whether what is better for you, or another just depends upon the situation.

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Based on 121 reviews.
Melinda Striyle
Melinda Striyle
2022-06-12
Attentive, respectful, great to work with.
Jenn Lighthall
Jenn Lighthall
2022-06-10
Absolutely fantastic. I would give more than five stars if I could. Highly recommend!
Meghna C.
Meghna C.
2022-05-31
Renee was great to work with when negotiating my contract! I am a resident physician signing on for my first attending job, and I felt more comfortable with the language used in the contract after going over it with Renee. I also got a higher starting salary which made the price more than worth it. I would definitely use Chelle Law again!
Jennifer Nevis
Jennifer Nevis
2022-05-30
Erin Howlett saved me from a terrible situation and I can't thank her enough. I had accepted a veterinary dental residency in northern Illinois with a private practice. The letter of intent was routine yet the actual contract so punitive and predatory in nature that it was hard to believe it was from the same people. Erin believed I was worth more than the "Zero" this practice claimed. Without her on my side, I would have naively signed this "bait and switch" and been finacially and professionally ruined if I couldn't complete the 6 year commitment this practice demanded.
robin singh
robin singh
2022-05-27
I consulted with Chelle law for contract review. They were suggested by our employer. Renee osipov was incredibly helpful and was able to navigate me in right direction. I fully recommend them.
Melanie Schlote
Melanie Schlote
2022-05-22
Erin was so professional and very quick to respond. She took the stress away from contract reviewing and made me feel confident in this next step of my career.
Mitul Patel
Mitul Patel
2022-05-22
I contacted Chelle Law for my dental contract review. I am very pleased with contact review with Attorney Renee. Renee was very kind, helpful, honest, informative and knowledgeable. She had some solid advice regarding negotiations. Katie was very helpful to schedule appointment with Renee within few days. I had some questions next day and emailed her and she responded back to me within an hour. I HIGHLY RECOMMEND CHELLE LAW FOR YOUR CONTRACT REVIEW. THANK YOU!!
Anna Etzler
Anna Etzler
2022-05-20
Renee was wonderful to work with and helped me with a contract review for my first NP job. She took the time to help me understand each section of the contract and even helped me successfully negotiate so that the contract would best fit my needs. Chelle Law was very responsive to my needs and set up my initial review and revision review in a timely manner! I would highly recommend their services to anyone in the medical profession.
Alan W
Alan W
2022-05-16
Had the privilege of working with their attorney Renee. She was really thorough, professional, and went above and beyond in reviewing my contract. Couldn't have asked for a better experience.

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