Occurrence Based Policies


If you currently hold a membership with one of the UK Medical Defense Organisations, it will be on what is called “an occurrence basis”.

An Occurrence policy covers professional services rendered at the time that the policy is in force, regardless of when an associated claim is made. For example, assume you had an Occurrence policy in force for the calendar year of 2011. If a claim is made today based on treatment performed on a patient in 2011, the 2011 Occurrence policy responds.

One advantage of Occurrence coverage is that the consultant receives a separate set of aggregate limits each year he/she purchases an Occurrence policy. Occurrence coverage does not end when the policy terminates; rather, the policy limits remain available to pay future claims based upon incidents that occurred during that policy period.


Occurrence policies do not require run-off cover, therefore, you do not need to worry about securing additional coverage in the event an Occurrence policy expires, whether due to death, permanent disability or illness, retirement or even changing insurers. This is why it is imperative to select a carrier that has the financial strength and analysis expertise to properly plan for any reserves that may be needed in the event a claim arises.


With Occurrence coverage, you receive a set of aggregate limits every year the coverage is in place. Occurrence coverage policy limits remain in place after the expiration of the policy period to pay claims arising from healthcare incidents that occurred during the policy period, subject to erosion and exhaustion.