Claims-Made vs. Occurrence Professional Liability Insurance for Nurse Practitioners: What’s the Difference?
- Jeff Schmidt
- May 29
- 3 min read
Claims-Made vs. Occurrence Professional Liability Insurance for Nurse Practitioners: Your Policy Type Matters More Than You Think
At CarePro Insurance, we work with thousands of nurse practitioners every year — and one of the most common (and confusing) questions we hear is: "What’s the difference between claims-made vs. occurrence professional liability insurance?"
The type of policy you choose can have a major impact on:
Your future coverage
Your out-of-pocket costs
Your flexibility when changing jobs or retiring
This guide explains everything you need to know — in plain English — and shows you how to quote the right coverage online instantly.
What Is Claims-Made Malpractice Insurance?
A claims-made policy only covers you if:
The alleged incident happened while the policy was active and
The claim is filed while the policy is still active (or during an extended reporting period, aka “tail coverage”).
What this means: If your claims-made policy ends and you don’t buy tail coverage, you’re no longer protected — even if the incident happened while you were insured.
✅ Usually less expensive up front
✅ Ideal for NPs who plan to stay with one employer or carrier for a long time
⚠️ Must purchase tail coverage if you retire, switch jobs, or change insurance providers
What Is Occurrence Malpractice Insurance?
An occurrence policy covers any incident that happens during the policy period, regardless of when the claim is filed — even years later.
What this means: If you had an occurrence policy in 2022, and a claim is filed in 2025 for something that happened in 2022 — you’re covered.
✅ No need for tail coverage
✅ Ideal for flexible practice models, travel work, or independent contractors
⚠️ Typically more expensive than claims-made policies initially
Quick Comparison Table
Feature | Claims-Made | Occurrence |
Covers claims filed after policy ends? | ❌ Only with tail coverage | ✅ Yes |
Tail coverage needed? | ✅ Yes | ❌ No |
Cost | 💰 Less expensive | 💰💰 Slightly more expensive |
Long-term flexibility | ❌ Limited | ✅ High |
Common for NPs? | ✅ Very common | ⚠️ Less commonly offered |
Why Nurse Practitioners May Choose Claims-Made
Many nurse practitioner policies in today’s insurance market are claims-made — and for good reason:
Lower premiums
Clear limits and definitions
Straightforward renewals and endorsements
Typical annual premiums for claims-made policies start around:
$750–$850/year for general outpatient practice
$900–$1,100/year for higher-risk areas like psych, urgent care, or aesthetics
These policies offer an excellent balance of affordability and protection, especially for nurse practitioners who are salaried, employed, or working in a stable environment.
When Occurrence Coverage Might Make Sense
Some nurse practitioners may benefit from an occurrence policy if they:
Work per diem or across multiple facilities
Plan to retire soon and want to avoid tail costs
Move between independent contracts or states
Want maximum long-term flexibility
If you’re unsure, our team can walk you through options — but for most NPs, claims-made is the most affordable and practical choice.
Tail Coverage: What You Need to Know
If you choose a claims-made policy, you'll want to plan ahead for tail coverage, which extends protection for claims filed after your policy ends.
Tail coverage is especially important when:
You leave a job
You change insurance providers
You close or sell a practice
You retire
At CarePro Insurance, we ensure the policies we offer include affordable tail coverage options to protect your long-term peace of mind.
Final Thoughts: Choose the Policy That Protects Your Future
Understanding claims-made vs occurrence insurance helps nurse practitioners:
Make smarter long-term decisions
Avoid dangerous coverage gaps
Match their policy to their career path
At CarePro Insurance, we’re committed to making insurance simple, transparent, and built for advanced practice providers like you.
Get started now with an instant quote tailored to your scope of practice and state of licensure:
