Nurse practitioners work with patients during stressful and sensitive moments. You take histories, perform exams, order tests, and make treatment decisions. These tasks carry risk, and even small issues can lead to a claim or a lawsuit. Malpractice insurance helps protect your career and your financial security when something goes wrong.
Insurance policies for nurses will usually contain a definition of “Claim” and contractual provisions relating to notification. There are two main types of malpractice insurance for nurse practitioners. One is an occurrence policy. The other is a claims-made policy.
Malpractice insurance, which is also referred to as Professional Liability insurance, is almost always a type of claims-made policy. However, you may find that some insurers do offer occurrence-based policies. Each type of policy handles claims differently, and this is why it’s important for nurses to understand what the differences are. You should always refer to the policy wording to understand which type of insurance you have.
What Is an Occurrence-Based Malpractice Insurance Policy?
An occurrence policy covers any incident that occurs during the policy’s active period. The key point is that the timing of the claim does not matter. Only the event date matters.
If you have an occurrence policy in place in 2025 and a patient files a claim in 2028 for an incident that occurred in 2025, the policy still responds. You do not need to keep the policy active in 2028. You also do not need extra protection after the policy ends.
This feature provides clear, steady protection. It follows you even after you leave a job or move to another state and offers peace of mind for past work.
Why Occurrence Coverage Matters for Nurse Practitioners
Nurse practitioners face unique risks. Patients may return years later with questions or concerns about earlier treatment. A simple follow up visit can lead to a new review of old records. When that happens, you want to know that the coverage you had at that time will still protect you.
Occurrence coverage helps in several ways:
- Predictable protection
You do not have to think about when a claim might be filed. If the care happened during the policy period, you have coverage.
- No tail coverage needed
Claims made policies often require tail coverage when you leave a job. Occurrence policies avoid this added cost and decision.
- Useful for a changing career
Many nurse practitioners change roles, employers, or even practice states. Occurrence coverage stays with your past work, which makes career changes easier.
- Clear limits
Your coverage limits apply to the year the event happened. This helps you track how much protection you had at each stage of your career.
These benefits can bring steady support for nurse practitioners who want long term clarity and fewer administrative tasks.
What Is a Claims-Made Malpractice Insurance Policy?
A claims-made policy covers claims only if the incident and the filing both take place while the policy is active. This means the timing of the claim matters. If a patient files a claim after the policy ends, the policy will not respond unless you have tail coverage.
Tail coverage gives you extra time to report claims after the policy ends. It is usually bought when you leave a job or close a practice. Many employers use claims made policies because they are often cheaper at first. The cost may rise later when you buy tail coverage.
Claims-made policies can work well when you plan to stay with the same employer for many years. They can also work if your employer pays for your tail coverage. Still, it is important to understand future costs and the gaps that can arise when you move between roles.
What to Review Before Buying a Policy
Before you choose an occurrence or claims-made policy, review the following areas:
- 1. Coverage limits
Each state can have different expectations. Make sure the limits match your scope of practice and any employer rules.
- 2. Cost over time
Occurrence policies cost more upfront. Claims-made policies cost less early but may require expensive tail coverage later.
- 3. Your future plans
If you expect to change employers or move to a new practice setting, occurrence coverage provides steady, straightforward protection for past work.
- 4. Employer coverage
Some employers provide only basic coverage. Others use claims-made policies with strict reporting rules. A personal policy can help fill gaps.
- 5. Policy exclusions
Every policy has limits on what it covers. Review these sections to identify where risks remain.
- 6. State rules and practice setting
Some states and practice types have higher risk levels. Surgical settings, acute care, and specialized treatment plans can increase the need for solid coverage.
Malpractice insurance is an important tool to help protect your license and your career. A clear understanding of occurrence and claims-made policies can help you choose protection that fits your work and your long-term goals.
