What Forms of Coverage are Offered in the State of Florida?
There are two types of coverage provided in Florida: Claims Made and Occurrence. Most specialties are provided Claims Made coverage. Only Psychiatrists and Dentists can have occurrence coverage.
What is Occurrence Coverage?
Occurrence coverage provides protection for incidents and/or claims reported anytime, as long as coverage was in force at the time the incident occurred.
What is Claims Made Coverage?
Claims Made Coverage requires incidents to occur and claims to be reported during the policy period for coverage to apply. Claims Made rates are on a five-year rate progression, starting low in the first year and “maturing” in the fifth year.
What is Retroactive, or Prior Acts Coverage?
A Retroactive or Prior Acts date as it is sometimes referred to, is applicable to Claims Made coverage only. As the rates progress over the five-year period, the retroactive date is usually the first date the physician becomes insured under a Claims Made policy.
What is “Tail” Coverage?
Tail coverage is a supplement to a Claims Made policy that provides coverage for any incident that occurred while the Claims Made insurance was in effect, but a claim was not filed before coverage was terminated. Tail coverage, also known as an Extended Reporting Endorsement, is generally necessary whenever an insured covered by a Claims Made policy does not continue an active policy.
What Limits of Liability Are Available?
Coverage can be obtained for limits of $250,000 each incident/ $750,000 General aggregate, up to $2,000,000 each incident/ $4,000,000 general aggregate