What is a key feature of occurrence-based malpractice insurance?

A key feature of occurrence-based malpractice insurance is that it provides lifetime coverage for incidents that occur while the policy is active, regardless of when a claim is reported. This means that if an incident occurs during the active policy period, the insured is covered for that incident even if the claim is filed years later after the policy has expired. This is particularly advantageous for professionals, as it offers peace of mind knowing they are protected against future claims stem from events that transpired while they were insured.

In contrast, other types of malpractice insurance, such as claims-made policies, only provide coverage for claims that are reported during the policy period. This means that if a claim is made after the policy has expired, there would be no coverage unless tail coverage is purchased. Thus, the lifetime coverage aspect of occurrence-based insurance is unique and provides comprehensive protection for incidents that occur while insured.