> ## Documentation Index
> Fetch the complete documentation index at: https://www.practiceownersguide.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Malpractice and business insurance

> Claims-made vs. occurrence, tail coverage, and the other policies a practice actually needs.

## Malpractice: the one decision that matters

Malpractice policies come in two shapes, and the difference only shows up when
you leave:

| Type        | Covers                                                          | The catch                                                                                          |
| ----------- | --------------------------------------------------------------- | -------------------------------------------------------------------------------------------------- |
| Occurrence  | Any incident that happened while the policy was active, forever | 20-40% pricier; nothing owed at exit                                                               |
| Claims-made | Claims filed while the policy is active                         | Cheaper now, but leaving requires **tail coverage**, often 1.5-3x the annual premium, in one check |

If you take claims-made (most groups do), negotiate the tail up front: who
pays it if you leave an employer, and whether the insurer offers free tail at
retirement. When hiring associates, decide the tail question in the employment
agreement, not at departure ([comp models](/guides/associate-comp-models)).

Buy limits your state and hospitals expect (commonly $1M per claim / $3M
aggregate), check for consent-to-settle language (can the insurer settle
without you?), and make sure the **entity** is a named insured, not just the
clinicians. In [MSO/PC structures](/guides/own-a-practice-without-a-license),
the PC carries malpractice; the MSO carries its own liability policies.

## The rest of the stack

| Policy                             | Why                                                                                                                          |
| ---------------------------------- | ---------------------------------------------------------------------------------------------------------------------------- |
| General liability                  | Slip-and-fall; landlords require it before keys                                                                              |
| Property / BOP                     | Equipment and contents; a BOP bundles GL + property cheaply                                                                  |
| Workers' comp                      | Legally required with employees in nearly every state                                                                        |
| Cyber liability                    | Breach response for a PHI-holding business; often required by partners                                                       |
| EPLI                               | Employment claims (wrongful termination, harassment); underrated for small practices                                         |
| Business interruption + disability | Replaces income when the practice or the owner can't work; overhead-expense disability specifically keeps the practice alive |

Buy through a broker who does healthcare, revisit at every renewal, and keep
certificates current in [CAQH](/guides/caqh-setup), an expired COI silently
stalls credentialing.

## Related

* [Ownership paperwork](/guides/ownership-agreements)
* [The compliance calendar](/guides/compliance-calendar)
* [Licenses and permits](/guides/licenses-and-permits)
* [Associate comp models](/guides/associate-comp-models)
* [Choose your legal entity](/guides/choose-your-entity)