What We Offer
- Occurrence Based Medical Malpractice Coverage
- Discounted Prior Acts Coverage
- Laboratory Coverage (Simple and Complex)
- Licensing Board Coverage
Occurence Based Medical Malpractice Coverage
PRF offers its policyholders the security of Occurrence Based Coverage, while other insurers offer California physicians and allied health professionals only Claims Made Coverage. Having claims made coverage can cost you thousands of dollars more over the course of your professional life and hamper your ability to relocate your practice—even within the same state.
WHAT IS THE DIFFERENCE BETWEEN OCCURRENCE AND CLAIMS MADE COVERAGE?
An occurrence policy is based on the date of the occurrence and provides coverage for any incident during the policy period, regardless when a claim is made or a lawsuit it filed. By contrast a claims made policy only provides coverage so long as the claim is reported during the policy period. If you change insurers, or if a claim is made after the policy period for any reason, you are generally not covered for it unless you have purchased additional coverage just for this problem.
For example, suppose that in 1995 an obstetrician/gynecologist is insured with PRF and has Occurrence Based Coverage. In 1997, he relocates his practice and is no longer a PRF Insured. In 2000, the parents of the infant born in 1995 file a lawsuit for birth related injuries. Although the physician is no longer a PRF Insured, he is still covered by his occurrence policy because the incident resulting in the claim occurred during the policy period. The same physician with a claims made policy would not have any coverage for this claim unless he had purchased additional “tail coverage.”
The cost of Tail Coverage charged by claims made insurers is typically calculated based on four factors: 1) the “risk level” of the medical specialty ; 2) the period of time the claims made policy was in effect; 3) the claims history of the insured; and 4) the length of time the tail coverage will last. Generally, the window of opportunity to purchase Tail Coverage is very narrow and the former insured is often expected to come up with a lump sum payment. Depending on the four factors mentioned, the cost of Tail Coverage can exceed $100,000.
By contrast, Occurrence Based Coverage provides long term protection from liability claims, eliminates the need to purchase Tail Coverage and allows health care professionals the freedom to make career choices that involve practice relocation without the heavy financial burden imposed by Tail Coverage.
Discounted Prior Acts Coverage
To accommodate health care providers who choose to join PRF but face the obstacle of purchasing “Tail Coverage” from a former insurer, PRF offers as an alternative its own "Prior Acts Coverage." This coverage provides new policy holders with the same protection as Tail Coverage, but at a substantially reduced price. In addition, PRF offers a variety of payment plans (as opposed to a lump sum payment).
Laboratory Coverage—Simple and Complex
PRF provides Laboratory Coverage with policy limits of $1,000,000 per occurrence/$3,000,000 aggregate per policy period for simple or complex office labs. Coverage is Occurrence Based not Claims made, and provides the PRF policyholder with the same level of security as PRF’s policy for medical malpractice coverage for physicians and allied health professionals.
Simple Laboratory coverage is available for offices that perform routine testing in-office, for example, testing for cholesterol levels. Complex Laboratory coverage is offered for offices or laboratories performing tests described as of moderate or high complexity under the Clinical Laboratory Improvement Amendments of 1988 (CLIA), such as IVF treatments and other complex procedures for infertility. Premiums vary according to the nature of the laboratory activities..
Licensing Board Coverage
Health care professionals increasingly find themselves facing inquiries or investigations by their applicable Licensing Board. Sometimes these investigations arise as a result of the settlement of a malpractice claim and at other times they result from a patient complaint or a report by another health care entity. Regardless, the legal cost of responding to such actions can be substantial. PRF offers Licensing Board Coverage on an occurrence basis to to pay all or part of the costs of legal defense in responding to a Licensing Board action