Frequently Asked Questions
What Forms of Coverage are Offered in the State of Florida?
There are two types of coverage provided in Florida: Claims Made and Occurrence. Most specialties are provided Claims Made coverage.
What is Claims Made Coverage?
Claims Made Coverage requires incidents to occur and claims to be reported during the policy period for coverage to apply. Claims Made rates are on a five-year rate progression, starting low in the first year and “maturing” in the fifth year.
What is Retroactive, or Prior Acts Coverage?
A Retroactive or Prior Acts date, as it is sometimes referred to, applies to Claims Made coverage only. As the rates progress over time, the retroactive date is the first date the provider becomes insured under a Claims Made policy. Benefits are available for any incidents that occur after the retroactive date as long as the policy is in force when the claim is made.
What is Occurrence Coverage?
Occurrence coverage provides protection for incidents that occur during the policy period. The claim can be reported anytime, as long as coverage was in force at the time the incident occurred.
What is “Tail” Coverage?
Tail coverage is a supplement to a Claims Made policy that provides coverage for any incident that occurred while the Claims Made insurance was in effect, but a claim was not filed before coverage was terminated. Tail coverage, also known as an Extended Reporting Endorsement, is generally necessary whenever an insured covered by a Claims Made policy does not continue an active policy.
What Limits of Liability Are Available?
Most coverage is obtained with limits of $250,000 for each incident/ $750,000 General aggregate. Higher limits are available up to $2,000,000 for each incident/ $4,000,000 general aggregate.