Historically “Tail Coverage” is an extended reporting period endorsement, offered by a physician’s current malpractice insurance carrier, which allows an insured physician the option to extend coverage after the cancellation or termination of a claims-made policy.

Is Tail coverage required?

Tail coverage only applies to a claims-made policy. Because it doesn’t matter when a claim gets filed with occurrence insurance, as long as the loss occurred during your policy period, tail coverage isn’t necessary.

What is tail and nose coverage?

What is the difference between nose coverage and tail coverage? Nose coverage addresses acts that occurred prior to your current policy’s start date. Tail coverage applies to acts that occurred while your prior policy was in force, but for which claims didn’t arise until after you canceled it.

How long do you need malpractice tail coverage?

You can buy tails that only cover claims filed 1 to 5 years after the incident took place, rather than indefinitely. These limits mirror the typical statute of limitations ― the time limit to file a claim in each state. This limit is as little as 2 years in some states, though it can be as long as 6 years in others.

How do you know if you have tail coverage?

Check the language in your policy or contact your insurance agent to see if yours does. If you are changing jobs or insurance providers but not retiring, you will need to either carry forward your current retroactive date and purchase prior acts coverage, or purchase an extended reporting endorsement.

Who typically pays tail coverage?

If either party terminates with cause, the other party is responsible for paying the cost of the “tail coverage”. The physician employee pays in most cases, but not if he/she is terminated without cause or if he/she retires. The parties split the cost 50/50, regardless of the type of termination.

What profession has the highest malpractice insurance?

Let’s take a look.

• Obstetrics and Gynecology. OB-GYNs rank among the most frequent targets of medical malpractice lawsuits.
• Neurosurgery.
• Plastic Surgery.
• Orthopedic Surgery.
• Thoracic and Cardiovascular Surgery.
• Minimizing Your Malpractice Insurance Premiums.