Navigating professional liability insurance is crucial for practitioners in massage and manual osteopathic therapy. Not all insurance policies are created equal, and understanding the differences can significantly impact your practice. Here’s what you need to know:
Occurrence-Based vs. Claims Made Coverage
Occurrence-Based Coverage:
- Coverage Details: Provides protection for incidents that occur during the policy period, regardless of when a claim is filed.
- Example: If an injury claim arises from a treatment performed years ago, as long as the policy was active at the time of treatment, coverage applies, even if the policy has since lapsed.
- Benefits: Offers continuous coverage for incidents even after the policy expires, ensuring peace of mind against future claims.
Claims Made Coverage:
- Coverage Details: Requires that both the incident and the claim occur while the policy is active.
- Considerations: Once a Claims Made policy expires or is canceled, it may no longer cover incidents from treatments provided during its active period.
- Extensions: Extending coverage beyond the policy period may incur additional costs and time constraints, limiting its flexibility.
Why Occurrence-Based Insurance Matters
- Security: Maintains coverage continuity even if you temporarily pause practice or switch associations.
- Financial Protection: Ensures defense costs and potential judgments are covered for incidents arising from past treatments.
Types of Coverage
The current CMMOTA insurance program gives its members both Occurrence-Based Commercial General Liability (CGL) AND Occurrence-Based Malpractice Liability Coverage.
Commercial General Liability (CGL):
- Coverage: Protects against property damage or injury occurring on your premises unrelated to therapy services.
- Example: Covers incidents like a client tripping and injuring themselves in your office.
Malpractice Liability:
- Coverage: Specifically addresses injuries resulting directly from your treatment or failure to provide adequate treatment.
- Example: Covers scenarios where improper treatment leads to client injury.
Coverage for Various Work Locations
CMMOTA’s liability insurance covers members for all types of clinic models. Whether you work at multiple clinic locations, operate a home-based business, or exclusively provide mobile services, you’re automatically covered under your liability insurance at no additional cost.
Important Considerations
- Coverage Area: Coverage applies within Canada. Notify us if you move so we can inform the insurance company to ensure your policy reflects your current location and to ensure you are in line with regulatory requirements.
- Home-Based Businesses: If you operate from your home, condo, or apartment, inform your home insurance provider. Some providers in Alberta, BC, Manitoba, and Saskatchewan offer competitive rates for home insurance that allows business use.
- Additional Coverage Needs: Contact Brokerlink or CMMOTA if you own one or multiple clinics, require more than $10,000 in coverage for business contents, or employ other practitioners as employees or subcontractors. Additional insurance may be necessary beyond your standard individual liability policy.
Conclusion
Choosing the right professional liability insurance is critical for protecting your practice and clients. Occurrence-based coverage provides robust protection against future claims, offering peace of mind and financial security. Understanding these distinctions empowers you to make informed decisions that safeguard your professional integrity and career longevity.
Get in Touch
Have questions about your liability insurance or other related matters? Feel free to contact the office for assistance.