Also called extended reporting period coverage, tail coverage is an important part of medical malpractice insurance coverage. It protects physicians from future claims that may arise after their policy period has expired or has been canceled. While it may seem like an additional expense, this type of coverage is very important for physicians at various carrier points in their careers.
Here are important points for you to consider.
Who Should Have Tail Coverage?
Tail coverage is especially important for physicians who are retiring, changing jobs, or transitioning to a new practice. It provides peace of mind and protects from substantial payouts and court costs associated with future lawsuits.
This coverage also protects physicians taking a leave of absence, reducing their practice hours, or switching to part-time work. In these situations, the risk of a malpractice claim may still exist even after the insurance policy period ends.
Here is more information about the circumstances that may require tail coverage.
Retiring Physicians
For retired physicians, tail coverage ensures that they are protected from potential lawsuits brought by patients they treated during their active years. This could include incidents that occurred years ago but are only being recognized now due to delayed onset of symptoms or complications.
Healthcare Providers Who Are Changing Jobs or Transitioning to New Practice Settings
When physicians change jobs or transition to new practices, they may not be covered by their former employers’ insurance policy. In these cases, tail coverage protects them from potential lawsuits related to their previous work. This is especially important for a physician who may have had a long career with one employer before making a change.
Additionally, doctors may switch from working alone to working in a group practice or hospital/medical center setting. In these scenarios, this coverage protects them from claims arising from past work done as an individual practitioner.
It’s important to note that when changing jobs or transitioning to new practice settings, physicians should always review their current insurance policies and consider purchasing additional tail coverage if needed.
Changing Malpractice Insurance Carriers
Similarly, if physicians switch malpractice insurance carriers, they may not be protected for past incidents which were covered under the previous policies. Tail coverage ensures that their reputations, assets, income and more are covered if patients make claims for incidents which occurred in the previous policy’s period of coverage.
New Doctors Just Starting Out in Their Practices
Tail coverage provides peace of mind and protection against potential malpractice claim. As they are still building their skills and experience, new doctors may be at a higher risk of making mistakes or facing legal challenges. With this type of coverage, they can be confident to focus on their patients without worrying about potential financial repercussions.
How to Get the Right Tail Coverage for Your Medical Malpractice Insurance Policy
We recommend you do some research before purchasing any medical malpractice insurance policy or adding riders, such as tail coverage. Follow these steps to ensure you have the coverage right for your state, specialty, and practice setting.
Understand Your Current Coverage
Before searching for tail coverage, fully understand your current malpractice insurance policy. This includes the amount of coverage, any exclusions or limitations, and when your coverage will end.
Research Different Options
There are many different types of tail coverage available from various insurance providers. Compare these options to find the best fit for your specific needs.
Consider the Cost
Tail coverage can be expensive. So factor in this cost when budgeting for your medical malpractice insurance. However, don’t let price be the only determining factor. Make sure you are getting adequate coverage.
Consult a Professional for Your Malpractice Tail Coverage Options
This is where an experienced and respected insurance brokerage comes in. At eQuoteMD, we assist physicians in selecting the medical malpractice insurance coverage which suits their specialties’, locations, practice settings, and more. We work with A++ insurance underwriters who can provide the protection you need at a fair and affordable rate.
To arrange your medical malpractice insurance consultation, call us today at (855) 823-5283 or request a complimentary quote here. We are located in St. Louis, MO, but work with healthcare professionals and insurance companies in all 50 states. Call today!
