What does claims-based malpractice insurance cover?

Claims-based malpractice insurance, also known as claims-made malpractice insurance, is designed to provide coverage specifically for claims that are made during the time when the policy is active. This means that if an incident occurs while the policy is in effect, the insurance will cover any claims filed related to that incident, regardless of when the incident itself happened as long as it is reported while the policy is active. However, if the policyholder discontinues the coverage, they are typically only covered for claims filed based on incidents that occurred during the policy term.

This structure is particularly important in the context of malpractice claims because it incentivizes healthcare providers to maintain their coverage. Once the policy expires, any claims arising from incidents that occurred while the policy was active but reported after expiration would not be covered, making it vital for providers to understand the terms of their insurance.

The other choices relate to different scopes of coverage that do not accurately reflect the purpose of claims-based malpractice insurance. For example, only covering claims made while still enrolled highlights the criticality of maintaining an active policy to ensure coverage for past incidents that were reported during that policy's life span.