• Facebook
  • Youtube
  • Instagram
  • LinkedIn
Call us now: (602) 344 9865
Chelle Law
  • Home
  • Medical Contract Attorney
    • Dentist Contract Attorney
      • Dental Associate Employment Contracts 
        • Can a Dental Associate Break Their Contract?
        • How a Dentist Should Negotiate a Contract |  Negotiating Dental Agreement
        • How is a Dentist Given a Draw in a Contract? | Dental Contracts with a Draw
        • Red Flags in a Dentist Employment Contract | Dental Employment Agreement Concerns
        • What Should a Dentist put in a Termination Letter? | Dental Contract
      • Dental Malpractice Insurance
        • Claims Made Insurance for a Dental Associate Explained | Same as Occurrence Claim for Dentists?
        • How Much Does Tail Insurance Cost for a Dentist?
        • Occurrence Based Insurance for a Dental Associate Explained | Different From Claims Made for Dentists
        • Dental Claims Made or Occurrence Insurance? (Professional Liability)
        • What is Tail Insurance for a Dentist? |  Malpractice Insurance for Dentists
      • Dental Non Compete Clause
        • Dental Associate Non Compete vs Non Solicit | Solicitation Concerns for Dentists
        • Dental Non Compete Mile Radius Explained | Non Compete for a Dentist
        • Dental Non Compete (How Long is ENFORCEABLE?)
        • Dentist Non Compete Restricted Offices Explained | Restrictive Covenants in Dental Practice
        • Is a Non-Compete Enforceable Against a Dentist? | Dentist Non Competition Enforceability
      • Dental Contract Benefits 
        • Dentist Employment Agreement (Bonus REPAYMENT?)
        • How Much PTO Should a Dental Associate Get? | How Many Days of Time Off Should a Dentist Get?
        • How Much Should a Dentist Get for CE Expenses? | Continuing Education Cost for a Dental Associate
        • Should a Dentist be Reimbursed for Moving Expenses? | Dental Expenses
        • What Expenses Should a Dental Practice Pay For a Dentist?: Dentistry Office Expense Costs for the Dentist to Be Reimbursed
      • Dental Independent Contractor Agreements
        • Are Dentists Usually Self Employed?
        • Dentist Independent Contractor Tax Deductions
        • Dentist Independent Contractor vs Employee | Dental Employees vs Independent Contractors
        • Is a W2 or 1099 Better for a Dental Associate?
        • What Is a 1099 Dentist?
    • Nurse Practitioner Contract Attorney
      • Nurse Practitioner Employment Contracts
        • Can a Nurse Practitioner Break Their Contract?
        • How a Nurse Practitioner Should Negotiate a Contract
        • Red Flags in a Nurse Practitioner Employment Contract
        • What is the Most Common Nurse Practitioner Compensation Model?
        • What Needs to go in a Nurse Practitioner Termination Letter?
      • 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?
        • Nurse Practitioner Non-Competes (ENFORCEABLE?)
        • Is a 2 Year Non Compete for a Nurse Practitioner Reasonable? | NP Non Compete
        • Nurse Practitioner Non-Compete (Is it ENFORCEABLE?)
        • Nurse Practitioner Non Compete vs Non Solicit
      • Nurse Practitioner Contract Benefits
        • Does a Nurse Practitioner Repay a Bonus if the Contract is Terminated?
        • Nurse Practitioner PTO (How MUCH Should You GET?)
        • Nurse Practitioner Relocation (How MUCH Is Enough?)
        • Nurse Practitioner Benefits Package (What Is FAIR?)
        • What Nurse Practitioner Expenses Should an Employer Pay For?
      • Nurse Practitioner Independent Contract Agreements
        • Is a W2 or 1099 Better for a Nurse Practitioner?
        • Nurse Practitioner Independent Contractor Tax Deductions
        • Nurse Practitioner Independent Contractor vs Employee
        • Nurse Practitioner Self Employed vs Independent Contractor
        • What is a 1099 Nurse Practitioner?
    • Optometrist Contract Attorney
    • Physician Contract Attorney
      • Medical Employment Contracts
        • J-1
          • ECFMG Certification Requirements | Certification Requirement
        • How Long Should a Physician Contract Be?
        • Should a Physician Accept an Arbitration Clause? | Medical Agreements
        • What is the Best Without Cause Termination Length in a Physician Contract? | Physician Dismissal
      • Medical Malpractice Insurance
        • Understanding Claims-Made Insurance (Is Occurrence BETTER?)
        • Occurrence Insurance (Is Tail Coverage NEEDED?)
        • Occurrence Based Malpractice (What SHOULD a Physician Choose?)
        • Tail Coverage Insurance (How EXPENSIVE Is It for a Physician?)
        • Physician Tail Coverage (Do Doctors PAY with Claims Made?)
        • Tail Insurance Cost for a Physician (Malpractice Insurance Cost)
        • 3 Ways a Physician Can Get Out of Paying for Tail Insurance | Medical Liability
      • Non-Compete Agreements
        • Is 10 Miles a Reasonable Restriction in a Physician Non-Compete?
        • Is a 2-Year Physician Non-Compete Too Long?
        • How Many Locations Should a Physician Non-Compete Apply to?
        • Is a Non-Compete Enforceable Against a Physician? | Physician Non-Compete
      • Medical Professional Contract Benefits
        • How Much Should an Employer Give a Physician for CME Expenses?
        • What Physician Business Expenses Should an Employer Pay For?
        • How Much Vacation Time Do Doctors Get?
        • Physician Relocation (How MUCH Reimbursement Should You Get?)
        • Hospital Sign on Bonus Pay Back | Repay a Bonus When Doctor Leaves?
        • Does A Physician Have to Repay Relocation Assistance If They Leave?
      • Independent Contractor Agreements
        • Can a Physician Be an Independent Contractor?
        • Physician Independent Contractor vs Employee
        • Is a W2 or 1099 Better for a Physician? | Physicians Contract
        • What is a 1099 Physician?
        • What Percentage of Physicians are Self-Employed?
    • Physician Assistant Contract Attorney
      • Physician Assistant Employment Contracts
        • Can a Physician Assistant Break Their Contract?
        • How To Negotiate a PA Contract (Better Salary TIPS)
        • Red Flags in a Physician Assistant Employment Contract?
        • How Are PAs Compensated? (2 BEST Ways To Get PAID)
        • What Should Go Into a Physician Assistant Termination Letter?
      • Physician Assistant Malpractice Insurance
        • How Much Does Tail Insurance Cost for a Physician Assistant? | Malpractice Insurance
        • Physician Assistant Malpractice Insurance (Do You NEED Claims Made?)
        • Tail Insurance for a Physician Assistant Explained
        • What is Claims Made Insurance for a Physician Assistant?
        • Occurrence Based Insurance for a PA (Malpractice Basics)
      • Physician Assistant Non Compete Clauses
        • How Many Locations Should a Physician Assistant Non Compete Apply To?
        • Is 10 Miles a Reasonable Non Compete for a Physician Assistant?
        • Is a 2 Year Non Compete for a Physician Assistant Reasonable?
        • Is a Non Compete Enforceable Against a Physician Assistant?
        • Physician Assistant Non Compete vs Non Solicit | Compete vs Solicitation
      • Physician Assistant Contract Benefits
        • Physician Assistant Sign-On Bonus (Will You Have to Give it BACK?)
        • How Much Paid Time Off Should a Physician Assistant Get?
        • Should a Physician Assistant be Reimbursed for Moving Expenses?
        • What Benefits Should Go In a Physician Assistant Offer Letter?
        • What Physician Assistant Expenses Should an Employer Pay For?
      • Physician Assistant Independent Contractor Agreements
        • Can a Physician Assistant be Self Employed?
        • Is a W2 or 1099 Better for a Physician Assistant?
        • Physician Assistant Independent Contractor Tax Deductions
        • Physician Assistant Independent Contractor vs Employee
        • What is a 1099 Physician Assistant?
    • Veterinarian Contract Attorney
      • Veterinary Associate Employment Contracts
        • Can You Break a Veterinary Associate Contract?
        • Veterinary Production Based Salary (Compensation Calculator)
        • How to Negotiate a Veterinary Associate Contract?
        • Red Flags in a Veterinary Associate Contract
        • What Should be in a Veterinary Associate Termination Letter?
      • Veterinary Malpractice Insurance
        • What is AVMA Excess Limit Coverage?
        • What is AVMA Veterinary License Defense Insurance?
        • What is Occurrence Insurance for a Veterinarian?
        • What is the AVMA PLIT?
        • Veterinary Malpractice Insurance (Do Vets NEED Tail Coverage?)
      • Veterinary Non Compete Agreements
        • How Many Locations Should a Veterinary Non Compete Apply To?
        • Is a Non Compete Enforceable Against a Veterinarian (ETHICAL?)
        • Veterinarian Non Solicit vs Non Compete
        • Veterinary Non Compete Mile Radius Explained
        • Veterinary Non Compete Time Limits Explained
      • Veterinary Professional Contract Benefits
        • How Much PTO Should a Veterinary Associate Get?
        • Veterinary Continuing Education (Is $2000 TOO Much?)
        • Veterinarian Sign-On Bonus (Must You Pay It BACK?)
        • Should a Veterinarian be Reimbursed for Moving Expenses?
        • What Veterinarian Business Expenses Should an Employer Pay For?
      • Veterinary Independent Contractor Agreements
        • Pros and Cons of Employment at a Corporate Veterinary Office
        • Should a Veterinarian be a W2 or a 1099?
        • Veterinarian Independent Contractor Tax Deductions
        • Veterinary Independent Contractor vs Employee
        • What is a 1099 Veterinarian?
  • Our Attorneys
    • Robert S. Chelle, Esq.
    • Renee Osipov, Esq.
    • Erin Howlett, Esq.
  • Results
  • Contact Us
  • Search
  • Menu Menu

Should a Nurse Practitioner Choose Claims Made or Occurrence? | Occurrence Coverage or Claims Made for Nurse Practitioners

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 the 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.

Differences Between Claims-Made and  Occurrence-Based Policy

What are the differences between the two? 

Occurrence-Based Coverage

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. 

Claims-Made Policy

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.

Tail Insurance

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 the cost. Tail is generally around twice what your annual premium is. Whatever you pay on an annual basis, multiply those times by 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 a 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.

Nurse Practitioners and Claims Made

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 the 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 be 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.

Nurse Practitioner Malpractice Coverage Tail Cost

How much does tail insurance cost for a nurse practitioner? First, we need to talk about what types of malpractice insurance are available, and then when you have a certain type, do you need tail insurance? First, the setting is important. If an NP is employed by a hospital or hospital network, usually, at least nowadays, they’re self-insured, which means tail insurance generally is not necessary. If they do have a claims-made policy, then tail insurance is necessary. However, if you’re employed by a hospital or hospital network, it is very rare that a nurse practitioner would have to pay for their own tail. When they would have to pay for their own tail is in a kind of private practice setting.

Types of Insurance for a Smaller Physician-Owned Group

If they’re employed by a smaller physician-owned group, or in some states if they have their own practice. In that case, two types of insurance are the most common. One is called an occurrence-based and one is claims made. Now, with an occurrence-based policy, the malpractice incident only must occur while a policy is in effect and meaning tail insurance is unnecessary. As far as claims made insurance goes, a policy must be in effect when the claim is made. And so, tail insurance is necessary for a claims-made policy. Just to kind of break down claims made, let’s say, a nurse practitioner is employed with a private physician-owned practice. If they terminate their employment, there still is a gap from when a patient knows the last day that the nurse practitioner provided care for the practice.

Statute of Limitations

Usually, there’s a two-year statute of limitations in most states. And in that case, the patient can sue after the nurse practitioner no longer works for that practice. Therefore, a policy must be in effect that kind of covers that gap in between when they leave and then the last day, they can be sued by somebody. As I said before, in most states, it’s two years from when the patient either knew or should have known of the malpractice incident. There are also some minor exceptions for minors when they become adults, that type of thing. But for the most part, two years is kind of a good rule of thumb. In the employment contract, if the nurse practitioner has a claims-made policy, it’s going to state who pays for tail insurance. If it’s a private practice, I’d say it’s often, the NP would be responsible for it.

As I said before, if they’re in a hospital or hospital network, more times than not, the hospital is going to cover it. If the nurse practitioner is responsible to pay for the tail, it must be purchased generally prior to or right around the date of termination with the employer. And a good rule of thumb is it’s about twice what your annual premium is. Your annual premium is simply how much the employer must pay to insure you each year. If you had to pay for tail insurance, it normally is around twice what your annual premium is, and it’s a one-time payment. You don’t have to pay it every year. It’s all paid upfront and your tail is covered for as long as whatever the length of the tail policy you bought was. Tail insurance can have longer tails than others.

I mean, you could get theoretically one year tail, a two-year tail, or an infinite tail. For most people, five years is kind of a good safe amount. If you had a two-year tail, but then something happened in year four or five, you are no longer insured, and it would be an issue. Now, how much does malpractice insurance cost for most NPs? Usually, it’s somewhere between 1500 to 2,500. So, let’s just say it’s $2,000. Then your tail cost would be around 4,000. Not like an enormous amount of money, but certainly something you may want to negotiate prior to signing the employment agreement. A couple of things to think about: one, if any, if it states that you must pay for a tail, you can always ask the employer to pay for it. That’s one way of doing it.

Paying the Tail Insurance Costs

If they’re unwilling to pay the entire amount, sometimes we’re successful in kind of tiering it. Let’s say, you have a three-year term for your contract. You could say one-third of the tail costs will be taken over by the employer for each year they’re there. So, by the time the three years are over, the employer pays the entire cost of tail insurance. Another way of getting out of having to pay for it would be if your new employer pays for your old tail. That’s called nose insurance. Or, if you stay with the same insurance company, normally, they will just roll over your policy wherever your new employer is, and you wouldn’t have to pay for tail insurance. This is something you can negotiate in the contract. Now, some employers are just simply unwilling to change any terms in the agreement, or maybe unwilling to change this term. And then, if that’s the scenario, you must make the decision of whether it’s a deal-breaker for you or not. So, that’s how much tail insurance costs, usually around twice what your annual premium is. You certainly want to find out what your annual premium is prior to signing the agreement. And that way you can forecast what your tail insurance cost will be.

Occurrence Nurse Practitioner Insurance

What is occurrence-based malpractice insurance coverage for a nurse practitioner?  If you’re a nurse practitioner and you’re out in either private practice, meaning, you’re working for a physician-owned practice, or perhaps you own your own practice in a state that allows it, there are going to be two types of insurance that you can utilize. One is called claims-made coverage, and the second is occurrence-based coverage. What is claims-made? Claims-made coverage simply means that a policy has to be in effect when the claim is actually made. You could be with an employer and then the contract would terminate for whatever reason, and then that policy is done. It only covers you for the time when you were there.

So, there would need to be a gap policy also known as tail insurance that covers the gap between when you leave the employer and then the last day somebody can sue you. For most states, that’s two years, and that’s called a statute of limitations. Basically, it’s a limitation on filing a suit against somebody. And for Med Mal claims in most states, it’s two years. And you would need that policy to cover your gap so that if you did get sued during that time, you would be covered. Now, as far as tail insurance is concerned, it’s usually about twice what your annual premium is, and your annual premium is just how much the employer pays for you to be insured on a yearly basis. I’d say most NPS, at least their annual premiums are probably around $2,000.

Should You Contact an Attorney About Malpractice Provisions in Your Contract? 

Have you ever stopped and wondered if there was a reason why you should perhaps stop and contact a nurse practitioner contract attorney about the various provisions written into your nursing contract? You are not wrong for having this thought. 

An attorney can go over the questions you may have about your contract to ensure that it is a safe contract for you to sign: 

  • Does it provide adequate malpractice insurance for you? 
  • What are the stipulations attached to the malpractice insurance that is provided? 
  • Are there reasons to believe that you should purchase additional malpractice insurance on top of what is automatically provided by your employer?
  • Is there anything else that you should ask for from your employer before accepting the position (such as the removal of a non-compete)? 

Your attorney is on your side in all of these matters, and he or she will look out for you in ways that no employer ever will. Scanning through contracts to look for anything that might raise a red flag is what these professionals are paid to do. 

Consultation with Chelle Law

Hiring an attorney to go over your contract takes just a short amount of time and a small amount of money to buy you the peace of mind that you want when you dive into a new job. If you would like to get a meeting set up with one of our talented professionals who can go over every aspect of your contract line by line, we strongly encourage you to contact us and let us know how we can be of assistance today. 

Nurse Practitioner Contract Questions?

Contract Review, Termination Issues and more!

Click Here for More Information

Call Us Now: 602.344.9865

Contact Us

If you are in need of assistance or would like to hear more about the services we offer contact Chelle Law today!

Links of Interest

  • Home
  • Nurse Practitioner Contract Attorney
    • Nurse Practitioner Employment Contracts
    • Nurse Practitioner Malpractice Insurance
    • Nurse Practitioner Non Compete Clause
    • Nurse Practitioner Contract Benefits
    • Nurse Practitioner Independent Contractor Agreement
Google
Based on 174 reviews
Destinee Hamlet
Destinee Hamlet
2023-01-31
Everyone was very helpful and professional. Felicia answered all my questions and made the process super easy and stress free.
Gabriela Martinez
Gabriela Martinez
2023-01-29
Definitely recommend! I’m a nurse practitioner and was able to renegotiate my contract with the help of Chelle Law. The outcomes were above expectations.
Linda Price
Linda Price
2023-01-27
I placed my trust in Chelle Law to handle my issue with the State Board of Nursing and they did not disappoint. Service was professional and courteous. I could not have asked for a better outcome. I highly recommend this firm!
Anni R
Anni R
2023-01-25
I had a great experience with Chelle Law. I’m so glad I found them and hired their services. Their communication was on point 👌 they’re very professional, always kept me updated, always returned my calls and emails in a timely manner. They’re compassionate and understanding of every situation. I would 100% use them again and refer them to anyone.
Chin Kim
Chin Kim
2023-01-24
Great hep overall. Fast response and even it was an hour review, the attorney stayed on the phone longer to answer all my questions.
Amelia
Amelia
2023-01-20
Booking the consultation was easy and I got all my questions answered! Excellent customer service.
Steven Yang
Steven Yang
2023-01-18
I am a veterinarian about 3 years+ out from school changing jobs for the first time since graduating . The idea of needing to closely review a contract was foreign to me and I honestly had no idea what I would be signing . Luckily I found Chelle law and worked with Erin who put all my worries at ease . She took the time and even went over our scheduled time slot to review / translate every section of my contract and make valuable suggestions that I could bring up to my future employer. Throughout our discussion it was clear to me that Chelle law is very familiar with the intricacies of a veterinary contract and what it typically should entail. I was very pleased with my experience .
Tiffany Efantis
Tiffany Efantis
2023-01-11
I used Chelle law for a non-compete clause review. I was referred to them by a friend. They were helpful, quick, and affordable for what I needed. I will definitely use them again for any employment contract review in the future!
Nicholas Peracchio
Nicholas Peracchio
2022-12-13
Erin was so thorough with my contract I felt extremely confident in my negotiations and ended up getting everything I wanted and more! I can’t recommend her enough. She took her time and made sure I understood everything I was signing and did so with a kind and caring demeanor. Thanks so much Erin!!
Seth Bricel
Seth Bricel
2022-12-13
I needed a lawyer to review my partnership contract and Chelle Law provided a great experience at a fair price. My lawyer thoroughly explained the meaning of the contract in terms I could understand and provided valuable perspective as to which parts were normal and which parts were atypical or in need of modification. Thanks to their help, I've reached a contract that I and my partners are very happy with!

Call Us Today!

602.344.9865

Hours/Office

Monday-Friday: 8:00am-5:00pm (MST/MDT)

Chelle Law 5425 E. Bell Rd, Ste 107

Scottsdale, AZ 85254

Contact Us Today!

5425 E. Bell Rd, Ste 107, Scottsdale, AZ 85254

info@chellelaw.com

Practice Areas

  • Professional Licensing Board Defense
  • Medical Contract Lawyer
  • Administrative Appeals & Hearings
  • Medical Contract Drafting
  • Fingerprint Card Attorney

Office Locations

  • Arizona
  • Indiana

Company

  • Robert S. Chelle, Esq. Founder & CEO
  • Sara Stark, Esq. Attorney
  • Renee Osipov, Esq. Attorney
  • Erin Howlett, Esq. Attorney

Resources

  • Blog
  • Contact Us
  • Sitemap

Follow Us

© 2022 Chelle Law. All rights reserved.  Disclaimer & Terms of Use.  Privacy Policy.

Scroll to top

How Much PTO Should a Physician Get Download



How Much PTO Should a Physician Get?

4 Factors to Consider with PTO

How Much Does Tail Insurance Cost Download

How Much Does Tail Insurance Cost for a Physician?

4 Key Aspects of Tail Insurance for Physicians

Physician Contract Review Checklist

Where Should We Send the Physician Contract Checklist?

28 Essential Physician Contract Terms to Put You in a Positive Financial Situation for Years to Come.