Doctors changing jobs need affordable Malpractice Tail Coverage solutions.

When a doctor decides to leave a practice, the cost of tail insurance can be a significant expense and sometimes, a painful surprise.

MEDPLI supports individual doctors by shopping the standalone tail marketplace for the best available coverage, alternative to the current carrier that you or your employer pay.

MEDPLI Tail Estimator

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How Much is Tail Insurance?

Tail Insurance is generally 200-250% of your expiring claims-made premium. The premium is usually due in full within 30 days of your last day of coverage under the current claims-made policy.

Examples of Tail Coverage Scenarios

  • An Orthopedic Surgeon is paying $30,000 per year for a claims-made premium; the tail insurance is estimated at $60,000.

  • An Anesthesiologist is paying $20,000 per year; the one-time tail cost is $40,000 to cover the prior acts period.

  • An Ob-Gyn is covered by their employer but is leaving the practice; $150,000 per year becomes a $375,000 tail cost.

  • A Cardiologist group pays the premium, but Dr. Smith is responsible for their own tail insurance, which costs $50,000.

Doctors who have medical malpractice insurance through their employer may not know the price of the premium their employer is paying. MEDPLI can help provide estimates before you are ready to tell your employer you are going to leave the practice.

Why is Tail Insurance So Expensive?

Tail coverage is the last premium collected by insurance carriers to cover a multi-year exposure period. This means they must anticipate future costs of legal defense and indemnity payments for a large number of individual doctors; thus, their pricing must be high enough to pay these unknown sums.

What is a Prior Acts Period?

The multi-year exposure period at your current job is referred to as your Prior Acts Period. The prior acts period is the time between your retroactive date and last day of work. Some of the major rating factors are:

  • Location

  • Specialty

  • Length of prior acts period

  • Prior claims history

  • Overall practice profile

  • Nuances in prior practice profile (ie you switched from OB-Gyn to Gyn only, but the OB exposure still must be considered)

All doctors leaving their employer may be faced with an expensive tail, and the higher risk your specialty, the more expensive it will be. We have helped many surgeons, anesthesiologists, and other specialists secure tail coverage at rates 20% lower than their incumbent carrier tail offer. MEDPLI is not an insurance carrier, we are brokers who make shopping for the best tail insurance easier. We are real humans who strive to provide fast, accurate estimates to doctors, and we value confidentiality.

Reach out to us to get started with solving your tail coverage. Call 800-969-1339 or use the MEDPLI Tail Estimator below to receive an expedited quote.

MEDPLI Tail Estimator

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Max Schloemann

About the Author

Max Schloemann is a medical malpractice insurance broker helping physicians and surgeons secure Medical Professional Liability coverage. A Magna Cum Laude graduate of Southern Illinois University’s College of Business, he was named Outstanding Management Senior.

Max began his career in 2008 at an industry-leading firm and founded MEDPLI in 2017 to guide private practice doctors and physicians in transition through the complexities of malpractice insurance.

Outside of work, Max, his wife Kristen (a Physician Assistant), and their four kids enjoy the outdoors and attending the kids’ sporting events. For malpractice insurance questions, you can contact Max here.

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