If you are a physician switching jobs, you might be shopping for tail insurance, which will cover you for medical malpractice claims filed after you’re removed from your former employer’s policy. While comparing tail policies and coverage, don’t forget to check these 3 things to make sure you’re completely protected if a medical malpractice claim is made against you.
1. Start Date of Coverage
Why? Your tail policy needs to cover you from the retroactive date (first date of employment with your former employer), NOT the start date of the new tail policy. If your tail policy doesn’t cover you from the proper retroactive date, you could end up uncovered for claims made against you for acts done years ago, since your former employer no longer has you on their insurance policy.
2. Length of Tail Coverage
Why? Tail coverage needs to run the full length of your Prior Acts Period (first date of employment to last date of employment with former employer). Anything less leaves you exposed.
Additionally, know how long into the future your tail policy will cover you. The gold standard is unlimited future coverage, especially since unlimited tail policies do not cost excessively more than shorter ones.
3. The Financial Strength of the Insurance Carrier
Why? Your tail policy is only as strong as the carrier who stands behind it. If you choose a carrier with questionable financial standing, you risk being unprotected when they can’t pay legal fees in the event of a lawsuit. This scenario has happened before, when carriers like Capson, HPIX, and Galen became insolvent, leaving doctors and patients unprotected and with little recourse.
Fortunately, A.M. Best offers a rating system that designates financially sound carriers with an “A” rating, making it easy for doctors to know which ones are best.
These are just a few items to pay attention to in your tail insurance due diligence. For more information on tail insurance or help finding an A-rated carrier that fits your needs, contact MEDPLI from our Contact page or at 800-969-1339.