Q:

What is tail insurance coverage?

A:

Quick Answer

Tail insurance coverage is a provision within an insurance policy that allows the insured to make claims after a policy has expired for acts that occurred when the policy was valid. A policyholder typically pays extra premiums for tail coverage, which is valid for up to one year.

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Full Answer

Tail coverage does not cover claims for events that occur during the tail coverage period. A physician requires malpractice tail insurance if his employer offers claims-made insurance only to ensure coverage for claims relating to past professional negligence. If a physician is covered by occurrence-based insurance, he does not need tail insurance because such insurance coverage is seamless even when moving to a different practice. The costs for tail coverage can be quite high for a physician and it is important for the physician to negotiate with an employer so that the employer pays for the coverage or part of it.

In some cases, a practice may offer to pay tail insurance for a physician on condition that his employment contract lasts for a specific period, such as three years. In case a physician leaves a practice, but retains the same insurance company, the physician may not have to pay tail insurance if the new practice is within the same state.

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