What is Malpractice Tail Coverage? What options are available?

Questions about Malpractice Tail Coverage? In this helpful video, David Leander, one of the many experienced medical malpractice insurance agents here at Cunningham Group, provides a clear explanation of what tail coverage is and the various options available.

Key Takeaways:

• Tail Coverage Bridges the Gap: For claims-made policies, tail coverage provides vital protection in situations like retirement or leaving a practice that requires it. It ensures continuous coverage for past incidents, even if claims are filed after your policy ends.
• Tail Coverage Options: David highlights the various options available, including different approaches to policy limits and coverage duration. Some insurers offer yearly adjustments to coverage limits, while others have fixed limits. Surplus lines companies may have shorter tail coverage periods, ranging from 12 months to 3 years.

Transcript

“Tail coverage is for physicians who have a claims-made policy. They are either looking to retire, or possibly, it could be written in their contract if they are an employee at a hospital or a practice. 

And, when they leave that hospital or practice, it could be required that they tail out, which means that they have to purchase an extended reporting endorsement, which basically, it’s an insurance policy that covers all of the work that they had done under that claims-made policy. 

Some of the different types of options depend on the insurance company. 

Some insurance companies will, every single year, redo the limits of liability. Some, if you exhaust your limits, you exhaust them. Some companies, like surplus lines companies, they have a limit on how much…how long a tail will last. 

Typically, it’s 12 months, 2 years, or 3 years.“

The Team at Cunningham Group is Here To Help

Whether you’re nearing retirement or considering a career change, understanding tail coverage is essential for ensuring continuous protection throughout your career. At Cunningham Group, our experienced brokers are here to answer all your questions and guide you through the tail coverage selection process. Contact us today for a free personalized malpractice tail coverage quote or check out our tail insurance calculator!