Smart Steps for Switching Your Malpractice Policy
Smart Steps for Switching Your Malpractice Policy
Whether you’re early in your career, transitioning to a new practice, or approaching retirement, there may come a time when you consider switching malpractice insurance carriers. Understanding the process, and your responsibilities when making that change, is key to maintaining continuous protection and avoiding unexpected coverage gaps.
Know When and Why to Make a Change
Orthodontists change carriers for many reasons: joining or leaving group practices, seeking different policy terms, or simply wanting coverage that better fits their needs. Regardless of timing, each transition requires careful coordination to ensure protection continues seamlessly.
Understand the Different Policy Types
The steps you’ll take during a carrier change depend largely on your policy type:
- Claims-Made Policy: Coverage applies only if the policy is active when both the incident occurs and the claim is filed. If you switch carriers, orthodontists may purchase tail coverage from their old insurer or obtain prior-acts coverage from the new one. In many cases, future carriers provide prior-acts coverage at no additional cost, minimizing the need for a paid tail.
Additionally, orthodontists retiring or ceasing practice often qualify for a free extended reporting endorsement (tail coverage), ensuring continued protection without an added expense. - Occurrence Policy: Coverage applies to incidents that happen during the policy period, no matter when the claim is filed. Because of that, there’s no need for tail coverage when you change carriers, but it’s still important to align policy dates to prevent any lapse in protection.
Report Potential Claims Before You Leave
Before leaving your current carrier, report any known or potential claims, even if they haven’t developed into formal complaints. Failing to report an incident could leave you personally responsible if the claim surfaces later, once your old policy is no longer active.
Avoid Gaps (or Overlaps) in Coverage
It’s essential to review your coverage start and end dates to make sure there are no gaps that leave you uninsured or overlaps that cause unnecessary double payments. Your insurance representative can help verify that your transition dates are aligned.
Your Risk Management Partner
Changing malpractice carriers is a normal part of an orthodontist’s career—but it must be done carefully. Reporting potential claims, understanding your policy type, and maintaining continuous coverage are essential steps to protect your professional reputation and financial security.
AAOIC is committed to protecting orthodontists and their practices. Stay informed and proactive about your insurance coverage to ensure continuous protection as you navigate different stages of your orthodontic career. Learn more about how AAOIC can help![SS1]