2023 Physician’s Guide to Tail Insurance

When doctors change jobs, they need to consider their options for tail insurance. Many doctors will simply buy the tail offer laid out by their employer. However, those who partner with a broker specializing in malpractice tail coverage will often save 20% on their tail coverage. Partner with MEDPLI to make your malpractice insurance less painful.

Since this article is written for doctors, we assume “you” are a doctor. We expect you have some burning questions, so we will answer some of the common questions below. Since your situation is unique, we recommend contacting us for advice on your particular tail coverage scenario.

Occurrence coverage does not require a tail. Tail coverage is only necessary for claims-made, or claims-paid, forms of malpractice insurance.

Tail Insurance, or Extended Reporting Period (ERP) coverage, is the mechanism that allows future reporting of claims that have not yet been brought to your attention. Remember, when a claims-made policy ends, it must be renewed with prior acts coverage, or a tail must be purchased. If you have claims-made coverage, and do not buy tail, there is no protection for medical liability claims after the policy lapses.

Most medical malpractice insurance lawsuits are filed more than 12 months after the medical incident occurred. When you cancel or non-renew a claims-made policy, you need tail to protect yourself from future lawsuits stemming from medical incidents that occurred AFTER the retroactive date and BEFORE the last day the policy is in force. This period is referred to as your prior acts period.

This depends on the employer, and your contract. If your contract stipulates that you are responsible for paying your own tail, you should contact us right away. If your employer is responsible, just make sure you get proof of coverage in writing before parting ways. For your next job, be sure to factor the cost of tail into the equation.

Tail insurance generally costs approximately 200% of the expiring claims-made premium. For example, let’s say your annual premium is $10,000. Then your tail coverage would cost around $20,000. While many doctors accept the first tail quote they are given, savvy doctors who work with MEDPLI save 20% on average. Since rates vary widely by specialty and location, as well as individual risk factors, we recommend you contact us for a personalized tail evaluation.

When you buy the tail offered through your employer’s insurance company, you will often pay 20% more than necessary. Instead, you can hire MEDPLI to shop the standalone tail market for the best deal for you. We work with “A” rated carriers to deliver the malpractice protection you need at more affordable rates.

No, we will help you save money in the short and long term. MEDPLI is the doctor’s broker. Our mission is to make Malpractice Insurance less painful for doctors. We strive to help physicians get the best available pricing on “A” rated professional liability coverage. Our services save time, money, and ensure the best available coverage for your unique practice.

Call us at 800-969-1339, email info@medpli.com, or fill out a contact request form.