Claims-Made vs. Occurrence
Professional liability insurance is based on a “claims-made” approach rather than on an “occurrence” approach. In a claims-made policy, coverage is triggered by the date the insured member first became aware of the possibility of a claim and notified the insurer of such knowledge. The insurance policy in force on the date the insured member gained such awareness is the one which responds to the claim. The policy period for a claims-made policy will extend backwards in time to a “retroactive date” years before the policy was purchased. Therefore, the policy will provide coverage for claims made today stemming from actions or events all the way back to that retroactive date. A claims-made policy requires the claim be made during the policy period or an extended reporting period (“ERP”).
Unlimited Extended Reporting Period
A unique feature of the CAMRT PLI policy is that it has an unlimited extended reporting period at no extra cost for all MRTs who have left the profession, whether temporarily or permanently, for various reasons including retirement, change of profession, maternity leave, unemployment, disability leave etc.
It is crucial to note, however, that members must reinstate the professional liability insurance coverage prior to returning to practice regardless of the circumstance (full time, part-time, casual or a one-time shift) and date.
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