There are 17,000 medical malpractice claims filed each year in the United States. Understanding malpractice insurance options and how each works ensures you are always legally protected, no matter where your career takes you.
If you have questions about locum tenens malpractice insurance, you are not alone.
In this blog, we will break down the two most common types of malpractice insurance—claims-made and occurrence—and discuss the claims-made policy Independence Anesthesia providers carry while on assignment.
What is malpractice insurance?
Medical malpractice insurance is a type of professional liability insurance carried by healthcare professionals. When a malpractice claim is filed, the insurance policy covers legal costs and other associated fees resulting from the lawsuit.
There are two types of medical malpractice insurance: claims-made and occurrence. Depending on your career, one policy may fit your circumstances better than the other.
Is locum tenens right for you? Read our comprehensive guide.
Claims-Made vs. Occurrence Malpractice Insurance
Though both claims-made and occurrence malpractice policies protect you from potential lawsuits, their cost, coverage, and stipulations differ.
Claims-Made Insurance
A claims-made malpractice insurance policy is often the most cost-efficient option for healthcare providers initially.
As its name suggests, a claims-made policy covers any claim that is made while the policy is active.
Both the alleged malpractice incident and the claim must occur during the active policy period.
If a claim is filed after you lose coverage (say, from retiring or changing employers), it will not be covered unless you purchase tail coverage. This is true even if the incident happened while the policy was active.
For example: say you are covered by your employer’s claims-made policy from January 1, 2020 to December 31, 2025. If an incident occurs in November of 2025, but the claim is filed in 2026, it will not be covered by the policy.
What is Tail Coverage?
Having a gap in malpractice coverage can be a huge liability. How can you ensure that claims made outside of your policy period don’t fall through the cracks? This is where tail coverage comes in.
Tail coverage, or an extended reporting endorsement, is an add-on to your claims-made insurance policy. It protects you against claims filed after your policy ends, as long as the incident happened while you were covered. This is typically a one-time premium.
It is important to mention that some employers will pay for tail coverage if/when you change jobs, while other employers will not. Be sure to clarify this with any potential employer down the line!
Tail coverage can be a smart investment that ensures you are legally protected in the event of a malpractice claim in the future, after the expiration of your claims-made policy.
Occurrence Insurance
The other main type of medical malpractice insurance is occurrence (or occurrence-based).
Occurrence malpractice policies are usually more expensive, but they automatically cover you for claims filed after the policy ends, provided the incident happened while the policy was active.
For example: you carry an occurrence policy from January 1, 2020 to December 31, 2025. A claim is filed in 2026 for an incident that occurred in November of 2025. It will be covered under your original policy even though it is no longer active.
Do Locum Agencies Provide Malpractice Insurance?
Most locum tenens agencies and staffing companies provide medical malpractice insurance at no cost to their providers.
However, the policy type or coverage may differ. When looking at locum tenens assignments, it is important to go over malpractice coverage details with your recruiter.
What type of malpractice insurance coverage does Independence Anesthesia provide?
When you are on assignment with Independence Anesthesia, you are covered by our claims-made malpractice insurance policy.
If you find your next locum tenens assignment with another agency, your past work with IAS will remain covered by our policy upon its annual renewal.
Conclusion
Even though there are different malpractice insurance policies, selecting the right one for your needs is vital to your legal (and financial) well-being. In this blog, we covered the key differences between claims-made and occurrence policies.
Before you accept a locum tenens assignment, clarify with your recruiter what malpractice insurance policy you will have so there are no unwelcome surprises down the road in your career.
For more information about our malpractice policy, please contact our recruitment team.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute formal legal, financial, or professional insurance advice. While we strive to ensure accuracy, regulations and policy details vary by state and facility. Independence Anesthesia is not liable for any actions taken or decisions made based on the content of this blog. Readers are encouraged to consult with a licensed insurance professional or legal counsel regarding their specific malpractice coverage needs.