What is Malpractice Tail Coverage?

You already know that medical malpractice insurance is a doctor’s safety net, but what happens when your policy ends? This is where malpractice tail coverage, also known as optional extended reporting period coverage, steps in. This valuable add-on protects you from claims filed after your primary policy expires, for incidents that occurred while the policy was active.

Why Do You Need Malpractice Tail Coverage?

Think of tail coverage as an extended warranty for your medical malpractice insurance. It safeguards you from future claims arising from your past work, even if they’re filed after your policy expires. In some cases medical malpractice lawsuits can take years or longer to surface. Without tail coverage, you could be held personally liable for a claim arising from your past work, even if your policy has expired.

See Also: Common Myths and Frequently Asked Questions About Tail Coverage

Why it’s Important to Have Tail Coverage:

• Claims Take Time to Surface: Medical complications can take months or even years to manifest. Tail coverage ensures you’re not left unprotected if a claim arises later.
• Career Transitions: Changing jobs, retiring, or leaving a practice group can create gaps in coverage. Tail coverage bridges these gaps, providing seamless protection.
• Claims-Made Policies: Most malpractice insurance is “claims-made,” meaning it only covers claims reported during the active policy period. Tail coverage safeguards you from future reports of past incidents.

Beyond the Basics: Other Considerations for Tail Coverage

Because the healthcare landscape is constantly evolving, it’s important be aware of some additional points to consider:

• Cybersecurity Threats: Medical malpractice claims involving data breaches or patient privacy violations are on the rise. Ensure your tail coverage addresses potential cyber threats.

State Law Updates: Some states have implemented caps on non-economic damages in malpractice cases. Understanding your state’s specifics can help you determine the appropriate tail coverage amount.

Why is Tail Coverage So Expensive?

Tail coverage for malpractice insurance typically costs around twice your final annual premium. This is because it protects you for a potentially long period after your policy ends. However, factors like your specialty and claims history can influence the price.

• For example, if a general surgeon in Philadelphia is paying $75,000 for their current malpractice policy and wanted to buy tail coverage, they could estimate their tail quote to be roughly $150,000.

While this is the general rule, that does not mean that it is impossible to save on your tail coverage. When you work with a malpractice insurance agency like Cunningham you get the advantage of a team with access to every major malpractice insurance carrier in your state.

How Can I Get Malpractice Insurance Tail Coverage?

Acquiring malpractice tail coverage doesn’t have to be a complex undertaking. Tail coverage can be purchased from your existing malpractice insurance carrier or through an independent broker who can shop around for the best rates from multiple providers. By partnering with a qualified insurance broker, you can ensure a streamlined process.

How Long Should Tail Coverage Last?

Tail coverage options range from shorter periods (2-3 years) to lifetime coverage. The ideal duration depends on your individual circumstances and risk tolerance.

• Lifetime coverage: Offers the most comprehensive protection, covering claims filed even decades after your policy ends. This is generally recommended for high-risk specialties or doctors planning a long career in medicine.
• Shorter tail coverage: Can be a cost-effective option for some doctors, particularly those in lower-risk specialties or nearing retirement. However, carefully consider your state’s statute of limitations for malpractice claims before choosing a shorter duration.

Purchasing Malpractice Tail Coverage: A Smooth Process

Cunningham Group’s experienced brokers can simplify your tail coverage journey. Our team will:

• Assess your needs: We analyze your specialty, career plans, and risk profile to recommend the best tail coverage options.
• Shop around for quotes: We leverage our extensive network to get you competitive quotes from top-rated insurance providers.
• Negotiate on your behalf: Our team possesses the expertise to negotiate the most favorable terms for your tail coverage policy.

Ensuring Peace of Mind Throughout Your Career

By understanding the importance of tail coverage and its role in protecting you beyond the active policy period, you can ensure comprehensive coverage throughout your medical career. Consulting with a qualified insurance professional can help you navigate the options and determine the best tail coverage solution for your individual needs. This proactive approach allows you to focus on what matters most – providing excellent patient care – with the peace of mind that comes from knowing you’re protected. Don’t leave your future to chance. Contact us today for a free malpractice tail coverage consultation!