Choosing the Right Malpractice Policy as an OMS

Malpractice claims and lawsuits are a persistent threat for oral and maxillofacial surgeons, often occurring unexpectedly. To protect your practice and career from allegations of wrongdoing, malpractice insurance is absolutely vital. It provides a crucial shield, helping to safeguard you from the significant financial and professional risks that claims and lawsuits can pose.

That being said, purchasing OMS malpractice insurance requires strategy. To make an informed decision when securing coverage, you should:

1. Compare policies
2. Regularly assess your business needs
3. Consult a professional for guidance

It’s crucial to understand the available policy types before choosing a specific one.

Navigating OMS malpractice coverage options

There are two main malpractice policy types OMS can choose from: Occurrence and Claims-made. To decide which one will best meet your needs, you must first understand each policy’s benefits and limitations.

• A Claims-made policy covers claims that are brought against you during the policy period, regardless of when the incident occurred. Your protection ends at the end of the policy term. If you leave a practice or retire, you’ll most likely need to purchase tail coverage.

• Tail coverage (sometimes called an Extended Reporting Endorsement) keeps you covered for any claims made against you once you stop practicing or end your Claims-made policy. Tail coverage can be expensive, sometimes double or triple your current annual premium.

• An Occurrence policy covers incidents that occur during the policy period, even if the claim is made after the period ends. Occurrence coverage doesn’t end when the policy ends. If someone files a claim against you, your Occurrence policy from the year of the incident will cover you. Each year you renew your policy, you have a new set of limits to protect you from any future claims that result from incidents occurring that year. 

Though Occurrence policies are generally more costly upfront than Claims-made policies, when the cost for tail coverage is factored in, Occurrence is often cheaper than Claims-made coverage in the long run.

As your insurance needs evolve over time, you’ll need to review your policy regularly and make adjustments as needed. In doing so, you can ensure you always have the right coverage for your current circumstances.

Cost considerations for each malpractice policy type

The cost of an OMS malpractice policy varies by location, claims history, and other factors. Claims-made policies typically cost less during the first year, while rates increase annually as the policy progresses. 

Conversely, the cost of an Occurrence policy can be higher at first, but over time, the premiums are more stable and predictable, often making Occurrence coverage more affordable in the long run.

Solo vs oral group surgery practice 

Understanding your specific role within a practice will help you determine which policy type and limits best apply to your situation.

Owning a practice

As owner of your practice, you are often a marketer, HR manager, CFO, and CEO. Much of your own time, energy, and money go into building your practice. Consequently, your practice, just like you, can be named in a malpractice lawsuit. 

There are two main business entity malpractice coverage types: Separate Limits Coverage and Shared Limits Coverage. 

• Separate Limits Coverage allows defense costs and indemnity payments to be paid on behalf of your practice ­separately from your individual policy limits. You may qualify for this option if you own all or a portion of your practice.

• Shared Limits Coverage means defense costs and indemnity payments will be paid on behalf of both you and your practice under one shared set of limits. This may be the right option for you if you have a solo corporation with no employed or contracted associates.

MedPro Group offers competitive business entity malpractice insurance solutions to help protect you and your practice. 

Joining an OMS group practice as an associate

Associate OMS, employed by practice owners, may get malpractice coverage from their group practice. To better understand the coverage terms set by your employer, request a copy of the policy.

Whether you’re full-time or part-time, your employer’s policy may not satisfy your coverage needs. Depending on employer preference, you may be able to purchase individual coverage out of your own pocket.

Retiring from an OMS practice

As a retired OMS, you remain at risk for malpractice claims, even years after you leave practice. Tail coverage is especially important at this stage in your career if you were previously covered under a Claims-made policy. 

Some carriers, like MedPro Group, offer free tail upon retirement, regardless of your age. To qualify for free tail upon retirement with MedPro, you must:

• Be fully retired
• Have a retroactive date at least 48 months prior to the date of retirement
• Be insured by the company for 12 months on a mature Claims-made policy

With free tail from MedPro, you can retire earlier with peace of mind.

Other malpractice policy factors for OMS to consider

Consider these additional aspects of a policy before signing on the dotted line.

Policy limits: The maximum amount an insurer is willing to pay for a claim filed against you.

• For Claims-made coverage, you must renew your policy annually to remain protected by claims, even if the incident happened in the past when you had coverage.

• Occurrence coverage provides a separate set of limits for each year you buy the policy. These limits never expire. If someone files a claim, you will still be covered by your policy from the year of the incident.

No matter the coverage type, make sure your limits are high enough to protect you throughout your career. Certain risks are better supported by higher limits. Consult an insurance expert to determine how high your limits should be to best suit your practice.

Additional coverages: Added policy benefits such as cyber liability, HIPAA coverage, audit coverage, and billing errors coverage. Remember to check these add-ons to ensure your practice is protected with the necessary additional coverages.

Pure consent provision: A detail on your insurance policy that determines whether you have the right to refuse to settle a claim. Make sure the consent provision in your policy gives you that power without exceptions.

Learn more about how these factors play into choosing a policy in our Guide to Malpractice Insurance.

Need additional support? MedPro Group is here to help.

Before deciding on a policy, it’s wise to consult a professional who specializes in malpractice insurance for OMS. Experts at MedPro can help you navigate the complexities of choosing a policy so that you’re confident in your decision. With over 125 years of malpractice experience, you can rest assured knowing MedPro Group will protect your good name.

To get started, schedule a free consultation or get a quote today.