Vasilios (“Bill”) J. Kalogredis, partner and chairman of Lamb McErlane’s Health Law Department was recently interviewed and quoted in the article, Malpractice Insurance 101 in Dermatology World, a publication of the American Academy of Dermatology.

A malpractice insurance policy often not only covers the settlement or awarded damages but also the legal defense costs.

Defense allotment can vary between policies, and health care professionals should consult with their insurer or attorney to understand those benefits. Attorney Vasilios ‘Bill’ Kalogredis, Chairman of Lamb McErlane’s health law department, added. “You may not end up losing a case, or even getting to a case or trial, but you may need a lawyer early on to fight or fend off a suit and you will want those legal fees covered.”

Types of policies

Understanding the type of policy an insurer is offering is very important. Kalogredis stated, “The number one thing I make sure my clients understand when evaluating insurance plans or joining a practice or entity is what kind of coverage they are getting.” Physicians are often not aware of the difference between the two main types of malpractice insurance: occurrence and claims-made coverage.

Occurrence coverage is generally more expensive but also more comprehensive. This type of policy covers incidents during the life of the policy regardless of when the claim is filed. For example, if a health care professional pays the premium for calendar year 2025, they are still covered if a claim is filed in 2027 for something that occurred in 2025, no matter if the professional still carries an occurrence policy or not. “The occurrence of the alleged malpractice is the measurement parameter,” Kalogredis explained. Haley highlighted that a physician has a set of limits for each year they are covered in an occurrence plan. “While this type of policy may be more favorable, carriers are more reluctant to offer this type of policy because of the legacy issues associated with it.”

Claims-made coverage covers incidents only if both the event and the lawsuit occur when the policy is active. While claims-made coverage can be less expensive up front, dermatologists should ensure they are properly covered in instances when they change policies, move to another state, or change employment. For example, if a dermatologist has a claims-made policy in 2025 but changes to a different policy in 2026, they would need to pay an extended endorsement coverage premium, often called a tail premium, to ensure continued coverage for 2025.

When dermatologists look to join a practice, the coverage of tail premiums can be an important part of contract negotiations. “For my clients, I try to get the employer to pay for either occurrence coverage or claims-made coverage with an agreement that the employer will pay for that tail-coverage premium,” Kalogredis commented. This can be particularly important for Mohs surgeons who may have higher premiums. Sometimes an employer may compromise and agree to pay the tail under certain conditions, such as a death or disability. Also, if a dermatologist has been in a claims-made policy for a significant number of years and then retires from practice, some policies waive the requirement to purchase tail coverage after retirement in order to still be protected.

 

**The article, Malpractice insurance 101, was written by Andrea Niermeier, Contributing Writer for Dermatology World