Claims Made or Occurrence?

[passant.holdout.0v]

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Full time 1099 position. I need to buy my own malpractice insurance. I was wondering if I should go with Claims Made of Occurrence based on these quotes.

Claims Made (Doctors Direct)
Year 1: $4000
Year 2: $9000
Year 3: $14000
Year 4: $17000
Year 5 and beyond: $19000
Tail: Approximately 200% of the year's premium.

Occurrence: $36000

Thanks!

 

[deleted87051]

Full time 1099 position. I need to buy my own malpractice insurance. I was wondering if I should go with Claims Made of Occurrence based on these quotes.

Claims Made (Doctors Direct)
Year 1: $4000
Year 2: $9000
Year 3: $14000
Year 4: $17000
Year 5 and beyond: $19000
Tail: Approximately 200% of the year's premium.

Occurrence: $36000

Thanks!

$36k/yr for occurrence vs $4-19k/yr+a single tail payment for claims made. Seems like a no brainer. All the numbers seem high but I guess that is state dependent.

 

[passant.holdout.0v]

$36k/yr for claims made vs $4-19k/yr+a single tail payment for occurrence. Seems like a no brainer. All the numbers seem high but I guess that is state dependent.

Not sure what you mean. It's $36k/year for occurrence (not claims made). So what would you recommend?

 

[abolt18]

Not sure what you mean. It's $36k/year for occurrence (not claims made). So what would you recommend?

Occurrence never wins with the numbers you presented.

 

[abolt18]

Here's some quick "running the numbers" (which you should have been able to do. Pretty sure my 4th-grader could have done this). This is if you quit the job after X number of years comparing the total cost of each option, assuming no policy or premium changes from what you've described.

Years	Claims Made+Tail total cost (thousands)	Occurrence Total Cost (thousands)
1	12 (4 + 4*2)	36
2	31 (4 + 9 + 9*2)	72
3	55	108
4	78	144
5	101	180
6	120	216
7	139	252
8	158	288
9	177	324

 

[deleted87051]

Not sure what you mean. It's $36k/year for occurrence (not claims made). So what would you recommend?

Sorry I had it turned around. Recommend claims made.

 

[abolt18]

BTW my comment above doesn't work in the app. Can only see the table on a browser.