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.Continue Reading
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.Learn more about Insurance