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Tail Coverage for Doctors: A Comprehensive Guide to Post-Policy Protection

Tail coverage is an essential safeguard for doctors navigating career transitions, retirement, or changes in malpractice insurance providers.


This type of insurance ensures protection against claims made after a claims-made policy has expired or been canceled, covering incidents that occurred while the policy was active.


Here’s everything you need to know about tail coverage for doctors and why it’s a must-have for healthcare professionals.




What Is Tail Coverage?


Tail coverage, also known as an Extended Reporting Period (ERP) endorsement, extends the time frame during which claims can be reported under a claims-made malpractice insurance policy.


It’s particularly valuable for physicians who may face lawsuits after their original policy period ends.


Key Features of Tail Coverage


  1. Extended Reporting Period: Provides a timeframe (often unlimited) to report claims after the expiration of the original policy.

  2. Coverage for Past Incidents: Protects against claims related to incidents that occurred during the active period of the original policy.

  3. Non-Cancellable: Once purchased, tail coverage remains in effect for the agreed-upon period.

  4. Cost: Typically costs 200-250% of the expiring premium, although cost-effective alternatives are available through specialized carriers.


When Do Doctors Need Tail Coverage?


Tail coverage becomes critical in scenarios like:


  • Changing Jobs: When transitioning to a new employer with a different insurance provider.

  • Retirement: To remain protected from claims filed after leaving practice.

  • Switching Insurance Providers: Especially if the new policy doesn’t include prior acts coverage.

  • Selling a Practice: Ensures ongoing protection after discontinuing individual malpractice insurance.


Real-World Scenario


Dr. Mike, an anesthesiologist, retires after years of practice. His claims-made policy ends on December 31, 2023. In 2024, a lawsuit was filed for a procedure conducted in 2022. Without tail coverage,


Dr. Mike wouldn’t be protected, leaving him vulnerable to significant financial risks. With tail coverage, however, he can report the claim and receive full protection.


How to Save on Tail Coverage


Purchasing tail coverage through your current insurer can be costly, but standalone tail coverage options offer significant savings without compromising quality. Standalone carriers can provide:


  • 10-35% Lower Costs: By obtaining quotes from multiple providers and encouraging competition.

  • “A” Rated Coverage: Reliable protection from highly rated carriers.


Practical Tips for Doctors


  1. Compare Quotes: Obtain multiple quotes to identify cost-effective options.

  2. Plan Ahead: Factor tail coverage into your career transition or retirement planning.

  3. Work with Specialists: Partner with insurance experts who can guide you through the process and help you secure the best rates.

Protect Your Career and Peace of Mind


Tail coverage isn’t just an add-on; it’s a vital component of your professional protection. Whether you’re switching jobs, retiring, or selling your practice, tail insurance ensures that you’re safeguarded from unexpected claims.


Don’t leave your career and finances exposed—plan ahead and secure the right coverage for your needs.


Have questions or experiences with tail coverage? Share them in the comments below to help fellow doctors navigate this important aspect of malpractice insurance.

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