Do You Need Tail Coverage On Your Malpractice Insurance Policy?

Tail coverage is crucial for medical professionals, providing protection against malpractice claims that arise after a policy ends. Tail coverage acts as a safety net, offering continued protection from issues related to past medical services, especially useful when changing jobs or insurers. Its importance lies in covering claims filed long after insurance lapses, influenced by the job’s risk level, the insurer, and coverage duration. While some employers may cover the cost, doctors should verify this with their workplace. 

What is Tail Coverage Malpractice Insurance?

Tail coverage is a part of malpractice insurance that keeps you protected even after your policy has ended. It’s really important for doctors or healthcare workers who are moving or leaving their current jobs. Getting to know about this specific type of insurance coverage helps in managing risks fully and making sure you’re covered all the time, especially during transitions between policy periods. 

Defining Tail Coverage in the Context of Malpractice Insurance

Tail coverage in malpractice insurance is like a safety net that lets doctors and other healthcare workers report claims even after their original policy has run out. It’s there to cover them for things that happened while they were still insured, but might only come up later on. With this kind of protection, medical folks can breathe easier knowing they’re covered against future claims from past incidents during the time the policy was active. Understanding the importance of malpractice tail coverage is crucial for anyone in medicine wanting to make sure they’ve got all their bases covered when it comes to liability protection.

The Importance of Tail Coverage for Medical Professionals

According to reports published by the AMA, 34 percent of all physicians have had a malpractice lawsuit filed against them at some point in their careers. With tail coverage, doctors and nurses are protected from future claims for things that happened while their original policy was still active but might come up after it ends. This kind of protection is important since issues related to medical malpractice can pop up even after the insurance period is over. By getting tail coverage, healthcare workers make sure they’re fully covered against any legal problems in the future, giving them a sense of security and financial safety no matter what uncertainties lie ahead in their profession.

Read the full Physician’s Guide to Malpractice Insurance here.

Do All Physicians Need Tail Coverage?

Not necessarily – It really comes down to what their specialty is, where they work, and the rules of the state they’re in. For doctors who are moving on or leaving their current place of practice, getting tail coverage is important because it helps guard them against any malpractice claims that might come up later on.

Scenarios Where Tail Coverage is Essential

When you’re thinking about retiring, changing your career, or moving somewhere new, having tail coverage in your malpractice insurance is critical. If you’re switching from one insurance company to another or leaving a group where you worked together with other doctors, it’s smart to make sure that the things you did before are still covered by getting what’s called tail insurance. This means if someone decides to sue for something that happened in the past, even after your original policy has ended, you’re still protected by medical professional liability insurance. For doctors who do really specialized and risky work like bariatric surgery or those who might already be dealing with a lawsuit over medical mistakes they’ve been accused of making, this kind of coverage can be a lifesaver. It keeps them safe from being sued for old actions once they’ve moved on professionally. In these scenarios, having tail coverage is essential to protect against potential medical malpractice lawsuits.

Exceptions to the Rule: When Tail Coverage May Not Be Necessary

In some situations, like when a doctor retires or switches to a job that doesn’t involve seeing patients, they might not need extra insurance called tail coverage. For doctors joining groups that already have this kind of protection or moving to places with their own arrangements, getting personal tail coverage may not be necessary. Also, if they get a new policy that covers past actions (prior acts), the need for separate tail coverage goes away. However, it is important to note that some insurance companies may offer free tail coverage as a benefit for physicians who have been continuously insured by that carrier for a certain number of years and meet certain age requirements upon retirement.

Read about these 6 Type of Medical Malpractice and How to Avoid Them

How Much Does Tail Coverage Cost?

The cost can vary depending on things like your area of expertise and any past claims you might have. Generally, it could be anywhere from a few thousand dollars to much more than that, especially for those in high-risk medical specialties. If you’re in a field with greater risks, you might have to pay more for this kind of insurance. It’s really important to keep these factors in mind while planning how much money to set aside for tail coverage in your specific medical specialty.

Factors Influencing the Cost of Tail Coverage

When it comes to figuring out how much tail coverage will cost, several things matter. For starters, what kind of medical work you do is super important because some jobs are riskier than others, and that can make the insurance more expensive. Also, how many years of prior acts coverage you need plays a big role; if you want protection for a longer time back, it’s going to cost more. On top of that, your history with claims and overall risk profile are taken into account by insurance companies when they set the price. They look at all these aspects to decide on the final cost.

Average Cost Range for Different Specialties

Orthopedic surgeons usually have to shell out a hefty sum for tail coverage malpractice insurance, with amounts ranging from $6,000 to $20,000. On the other hand, primary care physicians can expect their costs to be somewhat lighter on the wallet, typically between $3,000 and $8,000. For those in specialties considered higher risk like neurosurgeons might find themselves paying even more – anywhere from $25,000 up to a staggering $50,000. In contrast with this trend are lower-risk fields such as pediatrics where professionals could pay as little as about 2 grand for their insurance needs. These prices aren’t set in stone though; they often depend on how risky an individual’s practice is seen by insurers and what rates different companies offer – highlighting why it’s crucial for doctors of all types to get a tailored assessment when looking into malpractice insurance options. However, it’s important to keep in mind that these prices are just an estimate and it’s best to get a tailored quote for your specific specialty and claims history.

Do Employers Ever Pay for Tail Coverage?

Don’t assume your employer will cover the cost of tail coverage just because they paid for your malpractice insurance. While some do, many do not.
To find out if your employer will pay for tail coverage, check your physician employment contract. It should specify who is responsible for this cost when the contract ends.
Employers who agree to pay for tail coverage often do so to attract experienced, high-quality physicians. Physicians who have had to buy tail insurance before know it can be expensive. Having an employer cover this cost is a significant benefit, potentially saving a physician thousands of dollars when their contract concludes.

The Details to Look For in a Tail Insurance Policy

Tail insurance, or what some call extended reporting period coverage, is essential for doctors and other medical folks. It’s the part of professional liability insurance that lets you report claims about things that went wrong during the time your policy was active but you didn’t get around to reporting until after it expired. When looking into tail coverage there are a few big things to keep in mind:

Consent to Settle Provision

Your tail policy might lack a consent to settle provision, which requires the insurer to get your written approval before resolving a claim. Without this, the insurer can settle out of court without your agreement.

Legal or Attorney Fees

Most malpractice policies have liability limits and additional coverage for legal and attorney fees. Tail policies often include legal fees within the liability limits, meaning these fees reduce the available funds for damages if you’re found liable.

State-Specific Mandates

While some states don’t mandate malpractice insurance, seven states require tail insurance when your current policy ends:

• Colorado
• Connecticut
• Kansas
• Massachusetts
• New Jersey
• Rhode Island
• Wisconsin

Outside of these states, your employer might still require tail insurance for hospital privileges, even if the state doesn’t.

Retroactive Date

Then there’s something called the retroactive date to consider. This date marks when you first got covered by this kind of policy. You’ll want a tail policy that not only covers stuff from when your original policy was kicking but also matches up with when you started practicing medicine.
By focusing on these details—how much protection it offers against future claims and making sure dates line up right—medical professionals can make sure they’re well-protected with their professional liability coverage for anything that might come up later.

Red Flags and Pitfalls to Avoid in Tail Insurance Policies

This insurance is really important for doctors, but you’ve got to keep an eye out for some warning signs that might mean the policy isn’t as good as it seems. These warnings can show there are gaps in what’s covered, leaving doctors open to being sued.

For starters, with reporting period coverage, if a tail insurance only covers claims made within a certain time after the policy ends, anything that pops up later won’t be covered. This could leave doctors without protection when they most need it.

Then there’s another thing to watch out for: policies not covering all types of lawsuits. It’s crucial to go through the policy carefully so it protects against lots of different legal issues, especially those directly related to what kind of medicine you practice.

By paying attention to these things – like how long you’re protected after your policy ends and making sure all kinds of lawsuits are covered – medical professionals can choose better tail insurance policies.

How to Get Tail Insurance

Purchasing tail coverage is straightforward, and you can begin today by getting quotes through LeverageRx.

Provide details about your medical specialty, employer, and current carrier, and LeverageRx will gather and send you quotes from various insurance companies. This allows you to compare and choose the best option. LeverageRx also has experts available for consultation if you need more information or details on policy terms.

Don’t wait for your current policy to lapse before thinking about tail insurance. Patients can file claims anytime, and tail insurance is designed to fill those potential coverage voids. Make sure you have a tail policy secured before your existing policy expires.

Don’t wait until your current policy ends to start thinking about tail insurance.

Patients can file a claim at any moment, and the essence of tail insurance is to avert any lapse in coverage. To ensure continuous protection, you must secure a tail insurance policy before your current policy expires.

Ultimately, malpractice coverage is necessary for every patient interaction and all past, present, and future procedures you’ve participated in.

Beyond financial protection, it prevents coverage gaps. In certain states, coverage gaps can impact your medical license, potentially leading to job termination.

While tail coverage can seem complex, it becomes straightforward with expert guidance. To find the right tail insurance policy, contact LeverageRx for quotes and to speak with an agent who can help you explore your options.