What does tail insurance help cover?
It helps ensure coverage for a later patient claim about an incident that happened while you were insured under an employer’s claims-made policy.
Tail coverage explained
Tail insurance is stopgap coverage for physicians leaving an employer’s claims-made medical liability policy, including residents leaving training-program coverage. It helps cover a later patient claim about an incident that happened while the physician was insured under that policy.
What tail coverage addresses
Leaving a claims-made policy can leave a need for coverage when a patient files a claim later about care provided while you were insured. The AMA describes tail insurance as the stopgap coverage for this situation, including residents leaving a training program’s coverage.
Claims-made and occurrence coverage
The NAIC describes claims-made policies as paying only when both the event and the claim fall within the policy’s coverage period. In plain terms, coverage depends on when the claim is made.
Occurrence policies focus on when the covered incident occurred, rather than when the claim is made. Ask the insurer how the specific policy handles these circumstances.
Questions to ask your employer or insurer
- Is this policy claims-made or occurrence?
- What happens if a patient files a claim after I leave about an incident during my coverage?
- Will I need tail coverage when this policy ends?
- Who pays for tail coverage under my contract?
- What will tail coverage cost for this policy?
- How could the contract’s tail terms affect changing jobs?
Review the contract, not a general cost estimate
The AMA says the cost depends on the policy, so ask what it will cost. It also warns that contracts involving tail coverage carry risk and can hinder changing jobs; clarify the terms with your employer or insurer.
Frequently asked questions
Is tail coverage relevant to residents leaving training?
Yes. The AMA includes residents leaving medical liability coverage provided through a training program.
How much does tail coverage cost?
The AMA says cost depends on the policy. Ask the employer or insurer what it will cost rather than relying on a general figure.
Why review tail terms before changing jobs?
Contracts involving tail coverage carry risk and can hinder changing jobs. Clarify who pays and how the terms affect leaving.
Sources
- AMA: What resident physicians need to know about tail insurance
- NAIC: Medical malpractice insurance
- NAIC: Glossary of insurance terms
General information, not legal, tax or insurance advice. Confirm details with the source and with your state board, employer or insurer.