Denturist Professional Liability Coverages & Common Pitfalls

Professional Liability Insurance protects you — and your business — if a patient claims that a service you provided (or failed to provide) did not deliver the expected or promised results.

Even when allegations are unfounded, defense costs alone can run into thousands of dollars. If a settlement or judgment follows, the financial impact can be devastating. In today’s litigious environment, Professional Liability Insurance serves as critical protection against potentially crippling legal expenses.

Understanding the type of policy you carry is just as important as having coverage itself.

What Professional Liability Insurance Covers

Malpractice or Professional Liability Insurance generally covers:

• Patient injuries during procedures
  
• Alleged negligence
  
• Failure to diagnose or provide appropriate services
  
• Claims tied to professional services rendered as a Denturist
  

Policies include:

• Per-incident limits (maximum paid per claim)
  
• Aggregate limits (maximum paid during the policy period)
  

The Two Types of Professional Liability Policies

There are two primary policy structures:

1. Occurrence-Based Policies
   
2. Claims-Made Policies
   

Each operates differently and carries unique considerations — especially when switching carriers, changing employment, or retiring.

Occurrence-Based Coverage (The Simpler Structure)

An Occurrence policy provides coverage for incidents that happen during the active policy period — regardless of when the claim is filed.

Key features:

• Coverage is triggered by the date the service occurred
  
• It does not matter when the claim is reported
  
• Coverage remains intact even if:
  
  • You change carriers
    
  • You change employment
    
  • You retire
    
  • The policy is no longer active
    

If the service occurred while the policy was in force, that carrier remains responsible — even years later.

For many professionals, this is the most straightforward and predictable form of coverage.

Claims-Made Coverage (More Complex with Potential Pitfalls)

A Claims-Made policy works differently.

Coverage applies only if:

1. The malpractice incident occurred during the policy period and
   
2. The claim is reported while the policy is still active
   
3. The incident occurred after the policy’s Retroactive Date (Retro Date)
   

The Retro Date is the original start date of your claims-made coverage. It is permanent and critical.

Important Risk When Switching Carriers

If you switch to a new insurance carrier with a claims-made policy:

• The new carrier must honor your original Retro Date.
  
• If the Retro Date is not maintained, any claims from prior policy periods may be denied.
  
• The Retro Date should be clearly listed on the new policy documents.
  

Failing to carry forward your Retro Date can create a dangerous coverage gap.

Retirement, Job Changes & Tail Coverage

If you have a claims-made policy and plan to:

• Retire
  
• Change employers
  
• Switch to an occurrence-based policy
  

You may need to purchase Extended Reporting Period (ERP) coverage, commonly known as “Tail Coverage.”

Tail coverage allows you to report claims after the claims-made policy expires.

Without tail coverage:

• Any claim submitted after your policy ends will likely be denied — even if the incident occurred while the policy was active.
  

This is one of the most misunderstood and costly pitfalls of claims-made coverage.

Frequently Asked Questions

How do I know which type of policy I have?

Check your policy declarations page. It will clearly state whether coverage is Occurrence or Claims-Made.

What is a Retro Date?

The Retro Date is the first date from which claims-made coverage applies. Claims tied to services before that date are excluded.

Is tail coverage expensive?

Tail coverage can be costly, but it is often necessary when ending a claims-made policy to avoid gaps in protection.

Is occurrence coverage better?

Occurrence policies are simpler and eliminate the need for tail coverage, but availability and cost vary by market.

Why Understanding Your Policy Is Critical

Not knowing which type of Professional Liability coverage you carry can expose you to serious financial risk. The difference between adequate protection and a denied claim may depend entirely on:

• Your policy structure
  
• Your Retro Date
  
• Whether tail coverage was purchased
  
• Proper coordination when switching carriers
  

Professional Liability Insurance is not an area where assumptions should be made.

Always review your policy carefully and consult your broker or agent if you have questions about your coverage structure.

Final Thought

The right Professional Liability coverage protects your career, your reputation, and your financial stability. Understanding how your policy works ensures that you are properly covered — not just today, but years into the future.

If you are unsure about your policy type or considering changes, speak with a knowledgeable insurance professional before making any decisions.