If you are a doctor or nurse with claims-based malpractice insurance and are considering a switch in healthcare employers or retirement, hopefully you are finding an answer to the question “What is tail coverage insurance?” If you have not considered the question at all, read on.
As most medical professionals know, malpractice insurance protects both the physician and the employer from negligence claims. This type of coverage comes in two forms: claims-based or claims-made and occurrence-type. A claims-based policy protects medical professionals only during the policy term. An occurrence-type policy provides lifetime protection.
Trouble comes for doctors with claims-based coverage when the policy is terminated for any reason, even retirement. If a claim is filed after the policy is closed, the medical professional sits unprotected.
What is Tail Coverage Insurance?
Doctors and nurses can purchase tail coverage insurance to extend the term of their policy. Traditionally, this is little more than added time to the original policy at a new premium rate. The term “tail” captures the idea of this coverage coming at the tail end of the coverage.
When shopping, ask your agent more than what is tail coverage insurance. Find out about alternative policies that provide similar coverage. The industry is becoming more competitive, which means lower rates for customers.