Claims made after the expiration of a policy of claims-made insurance are covered by “tail” coverage. A claim filed after a claims-made policy is canceled or not renewed will not be covered.
If you have a tail, how long should coverage be?
Most tail quotes have a validity period of 30-60 days, after which they cannot be renewed. You should start thinking about alternative funding sources, if necessary, well before you need to make a purchase of your tail insurance.
What is tail end coverage?
If your business insurance is structured in the form of a claims-made policy, you will have access to tail coverage. It protects your company even after your insurance policy has expired, should any claims arise. When their insurance is canceled or not renewed, they have the option to add this protection.
What is the average cost of this type of insurance?
Just how much does it cost to have your tail covered? The average cost of tail insurance is about 200% of the claims-made premium that is about to lapse. Say, for argument’s sake, your premium is $10,000 per year. Insurance for your tail would then set you back about $20,000.
When should I buy tail coverage?
You can’t simply walk away from the possibility of being sued for medical malpractice just because you’ve changed jobs or are retiring. The vast majority of MPL policies are claims-made, so if you’re leaving your current job or retiring, you should consider purchasing tail coverage.
After employment ends, can a doctor still be responsible for paying for tail insurance?
However, as competition for physicians grows and the price of hiring a new doctor rises, this possibility decreases. On the other hand, regardless of the reason for termination, the employer may agree to foot the bill for the “tail coverage.” This occurs infrequently.
What happens to your tail coverage when you leave a group?
You may be eligible for free tail coverage upon retirement, disability, death, or even relocation to a different service area, depending on your insurance provider. It’s possible to leave a group under certain conditions without having to pay for “tail” insurance.
How long must you work for a company before you are eligible for free termination insurance?
Sometimes a doctor needs to be on staff for a minimum of five years before they are eligible for free tail insurance. Or, the company may agree to pay the severance for a doctor who is let go without cause but not for a doctor who is fired for cause.
When does an employer have to pay for sick leave?
If you’ve worked for the same company for at least three months, and if a doctor from a government-approved medical facility or one appointed by your employer issues a certificate stating that you need at least one day of paid sick leave, your employer is required to cover the cost of the consultation under the Employment Act.
