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Why Should I Choose a Claims Made Policy?

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.

More questions about insurance? Check out OMIC’s Insurance 101 library here.

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Six reasons OMIC is the best choice for ophthalmologists in America.

Consistent return of premium.

Publicly-traded insurance companies exist to make profits for shareholders while physician-owned carriers often return profits to their policyholders. Don’t underestimate this benefit; it can add up to tens of thousands of dollars over the course of your career. OMIC has one of the most generous dividend programs for ophthalmologists and has returned more than $90 Million to our members through dividends.