Myths & Common Questions Answered

Malpractice tail coverage can feel like a complex topic.  Our team of experienced malpractice insurance specialists has put together this quick reference guide to shed light on some common myths and answer frequently asked questions medical professionals may have about finding the right solution for their needs.

Common Myths about Malpractice Tail Coverage

Myth No. 1: Tail Coverage is Automatically Included in My Malpractice Policy.

Most malpractice insurance policies are “claims-made,” meaning they only cover claims filed during the active policy period. Tail coverage is an optional add-on that extends coverage for incidents that happened while your primary policy was in effect, but for claims filed after it expires.

Myth No. 2: You only have 30 days from the date your coverage ends to purchase Tail Coverage.

While there are deadlines for purchasing tail coverage, they vary by insurance company. It’s crucial to check with your carrier or broker well before your policy expires to understand their specific timeframe. Don’t wait until the last minute!

Myth No. 3: You have to purchase lifetime Tail Coverage.

Tail coverage options range from short-term (2-3 years) to lifetime coverage. The ideal duration depends on your specialty, risk tolerance, and career plans. Discuss your options with a qualified broker to determine the most suitable coverage length for your situation.

Myth No. 4: Tail Coverage is Expensive, So I Should Skip It.

Tail coverage can be costly, often around twice your final annual premium. However, the potential financial burden of an uncovered claim can be far greater. Consider it an investment in your long-term financial security.

Myth No. 5: I Only Need Tail Coverage if I Plan to Retire Soon.

Career changes, practice group departures, or even temporary gaps in coverage can leave you exposed. Tail coverage bridges these gaps and ensures continuous protection throughout your career.

Myth No. 6: Only High-Risk Specialties Need Tail Coverage.

While some specialties have a higher risk of claims, all doctors are vulnerable to lawsuits. Even seemingly low-risk cases can take years to surface. Tail coverage offers peace of mind for all specialties.

Common Questions About Malpractice Tail  Coverage

Is purchasing malpractice tail coverage required?

No, purchasing malpractice tail coverage is not mandatory. However, it’s highly recommended for all doctors to ensure continuous protection throughout their careers. A lapse in coverage can leave you financially responsible for claims arising from past incidents.

Why do I need malpractice tail coverage?

Medical malpractice lawsuits can take years, or even decades, to surface. Tail coverage ensures you have financial protection for claims filed after your policy ends, but for incidents that occurred while you were insured.

How much does malpractice tail insurance cost?

Malpractice tail coverage typically costs around twice your final annual premium. However, the exact cost varies depending on your specialty, claims history, desired coverage duration, and chosen provider.

How is malpractice tail coverage calculated?

Several factors influence the cost of tail coverage. Your specialty (higher risk specialties generally cost more), claims history (past claims can increase the price), desired coverage duration (lifetime coverage is typically more expensive than shorter terms), and geographic location (premiums can vary by state) are all considered.

Can I pay for my malpractice tail coverage in installments?

Yes, some insurance companies offer payment plans for tail coverage, allowing you to spread the cost over time.

Can I buy malpractice tail coverage early or ahead of time?

In most cases, you cannot purchase tail coverage until your primary malpractice policy is nearing its expiration date or has already expired. However, it’s wise to discuss tail coverage options with your agent well before your policy ends to ensure a smooth transition.

Will my employer provide or pay for malpractice tail coverage for me?

In most cases, employers won’t provide or pay for malpractice tail coverage for their doctors, although this depends on your employment agreement. Some healthcare organizations may offer tail coverage as a benefit. It’s best to clarify your employer’s policy regarding tail coverage.

Do I have to buy malpractice tail coverage before I leave my current position?

No, you are not obligated to purchase tail coverage before leaving your current position. However, a gap in coverage can leave you vulnerable. Consider purchasing tail coverage before your current policy expires to ensure continuous protection.

When should I buy malpractice tail coverage?

The ideal time to consider tail coverage depends on your career goals. If you plan to change jobs, retire, or take a leave of absence. Discussing your situation with a qualified insurance professional can help you determine the best timing for your tail coverage purchase.

How long should malpractice tail coverage last?

Tail coverage options range from short-term (2-3 years) to lifetime coverage. The ideal duration depends on your individual circumstances and risk tolerance. A doctor nearing retirement with a low-risk specialty might choose a shorter term, while a doctor early in their career with a high-risk specialty might opt for lifetime coverage. Consider your specialty, career plans, and statute of limitations for malpractice claims in your state.

Is prior acts coverage the same as malpractice tail coverage?

No, prior acts coverage and malpractice tail coverage are not the same. Prior acts coverage protects you for claims arising from incidents that occurred before your current policy’s inception date. In contrast, tail coverage protects you for claims arising from incidents that occurred during your current policy period but are filed after the policy expires.

Which doctors pay the most for malpractice tail coverage?

Doctors in higher-risk specialties typically pay more for malpractice tail coverage. These specialties are often associated with a higher likelihood of claims, such as neurosurgery, obstetrics, and general surgery.

How do I get a malpractice tail coverage quote?

There are two main ways to obtain a malpractice tail coverage quote:

• Contact your existing malpractice insurance carrier: They can provide you with a quote for tail coverage based on your current policy and risk profile.
• Work with a qualified insurance broker: When you work with the team at Cunningham, we can shop around for quotes from multiple malpractice insurance providers, potentially securing you a more competitive rate. In addition, our years of experience means we can also guide you through the tail coverage selection process and ensure you choose the right option for your needs.

Ensure Continuous Coverage With Malpractice Tail Insurance

With a clearer understanding of tail coverage and its benefits, you can make informed decisions about protecting your future. Cunningham Group’s experienced insurance brokers can help you navigate the tail coverage process and secure the right coverage at a competitive rate. Contact us today for a free personalized tail coverage quote!