What does it mean if I have a “gap in coverage?” Are there any disadvantages to having a gap?

Category: Making Policy Changes

If you have canceled or allowed a policy to lapse and did not secure another policy to begin effective the date your previous policy lapsed or was canceled, there is a “gap” or period of time between the prior and subsequent policies where you are uninsured. This means, if a claim arises out of a Professional Incident or therapy occurring during this “gap,” the insurance company will not be obligated to pay the claim on your behalf.

Other disadvantages to having coverage gaps:

  • Insurance companies (including CPH Insurance) may decline to write a new policy on your behalf due to the gaps in your coverage.
  • If a claim arises out of therapy that was conducted over a period of time during which there was a gap between policies, any assistance from any involved insurance company could become delayed or declined altogether due to the existence of a gap