0:01

So which of the policies

0:03

between occurrence claims made

0:06

and claims paid policies do most radiologists have?

0:10

Most radiologists have claims made policy in part

0:13

because the occurrence policy,

0:15

because it lasts forever, is more expensive.

0:19

At least initially the claims made policy is less expensive.

0:25

But when you add in tails

0:28

and noses, if you're required to do that

0:30

because you're changing carriers,

0:32

then it eventually evens out with the occurrence.

0:35

But for most people in most practices, group practices,

0:38

for example, it's a claims made policy.

0:43

What are the issues with an occurrence policy?

0:45

Well, the occurrence policy assumes that

0:49

that medical malpractice company is gonna be around forever

0:54

to cover your issues

0:56

that occurred while you had that policy.

0:59

So you have to go with a company that is reliable

1:04

and isn't gonna go bankrupt

1:05

and not be available with money to pay your pay, your, your,

1:10

your malpractice, uh, payouts after you've left them.

1:15

So you know, will it really cover 20 years later.

1:19

And that can occur with minors.

1:21

So if you know that the statute

1:23

of limitations in your particular state

1:25

with minors is seven years, or 14 years,

1:27

or even 20 years,

1:28

depending upon when the person no longer is a minor, um,

1:33

you need an occurrence coverage company that's gonna be

1:38

around for those longs.

1:40

So, um, the other thing is inflation.

1:43

So let's say you buy a policy for that has a million dollars

1:46

of coverage, uh, 20 years from now.

1:49

Um, it may be that,

1:51

but the cost of living as it is, that might not be enough

1:55

that you have 20, 20 years from now.

1:58

So, um, keep, keep your policies, keep your copies

2:01

of your old policies, particularly when you're dealing

2:03

with an occurrence PO policy with the claims made policy.

2:06

We talked about the issues that the cost varies

2:09

as you start out because of more cases accumulating.

2:13

The cost will vary with your noses and your tails.

2:16

If there's a policy wraps, you need to get coverage

2:19

and the tails may be limited to five years in duration,

2:24

and they are relatively expensive.

2:26

Fortunately, the likelihood that you'll be sued

2:29

for something that occurred five years ago

2:33

is relatively low,

2:35

and some states have a statute of limitations with regard to

2:40

how soon you are allowed to sue a physician

2:44

after an error is discovered.

2:47

So, um, you have to keep current with the limits on the,

2:51

in, on the damages.

2:52

You can top off your prior policies

2:55

by adjusting retroactive dates.

2:57

Remember that you can go backwards in time actually

3:00

with the nose, for example.

3:03

And, um, understanding those issues

3:05

with claims made policies are important.