Policyholder Services

Are there benefits to a claims made and reported policy?

Yes. First, claims made and reported policies are generally less expensive than occurrence policies because claims made carriers can more accurately predict the frequency and severity of claims that will be reported during the policy period. Occurrence carriers, on the other hand, must predict not only how many claims will arise from services rendered this year and how severe they’ll be, but also when they’ll be reported and whether inflation will increase the cost of such claims. Second, claims made and reported policies are step-rated so there is an additional cost savings during the first few years of claims made and reported coverage. Third, occurrence policies are not always readily available; many carriers that once offered them are now insolvent and many others have discontinued offering occurrence policies. Finally, there is essentially no difference between the kinds of injuries and damages that are covered by occurrence and claims made and reported policies; both offer the same type of protection.

As long as you remain continuously insured under your claims made and reported policy, you will be covered for new claims arising from services rendered since your retroactive date. And, because of the availability of “tail” coverage, you may continue to be insured for them long after you cancel your policy — just like you would under an occurrence policy.

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A-rated by AM Best, OMIC is ranked #1 among 50 malpractice insurance companies in America for financial stability. No other carrier has matched OMIC's consistent financial performance with regard to both combined and operating ratios, the two most relevant financial measurements for an insurance carrier.