Tail Coverage Question

[sll908]

I am a new grad and was just offered an internal medicine job in Florida with malpractice insurance covered, but no tail coverage. I am under the impression that tail coverage is necessary, but when I asked my employer about it he said "PAs don't really need it". Does anyone have any advice? Do I really need tail coverage and is there a way for me to purchase it on my own if I do need it? Thanks!

[lightbearer06]

You need tail coverage. If you see someone while working there that turns into a lawsuit 3 years after you leave, tail coverage means that the insurance company will cover the lawsuit. Do a little research and figure out what types of coverage are out there and what this employer has.

[Jason09]

Yeah you need tail. If the job doesn't offer it you can always get it by yourself. Having said that it can be pretty pricey so consider that when negotiating.

[polarbebe]

I recently left one of my positions and because my previous employer did not have tail insurance; I am looking around now. Can anyone recommend any good insurances? Thanks.

[Inotoma]

You will often only be able to secure tail coverage from the carrier who has insured you. Further it can be quite pricey up to 4 times the annual premium depending on the lenght of the tail policy. You can eliminate the need to buy tail coverage by securing your own personal medical liability policy. This policy will follow you from employer to employer eliminating the need to purchase a costly tail policy and also eliminates any coverage gaps. It is definately the more economical way to go, I just got one through mededge.

[Resptech99]

You need tail coverage only if your malpractice policy is a Claims-Made policy. THat means that the coverage is activated when the claim is made. i.e. you switch carriers today, but a patient you saw last week sues you over an incident that occurred last week, the new policy covers the incident, not the policy that was active during the incident. If your employer has Occurrence coverage you do not need a tail because the policy that was in effect the date of the Occurrence covers the incident. i.e. you switch carriers today, but a patient you saw last week sues you over an incident that occurred last week, last weeks policy covers the incident.

 

A "tail" covers the hypothetical gap in coverage when you either A. Retire, B. Switch from Claims Made to Occurrence coverage, or C. Change jobs. You do not need a tail if this is your first job because there is no prior incident time period that a claim could arise from.....you have never practiced before. You do not need a tail if you are moving from one claims-made policy to another claims-made policy. Some carriers give a "free" tail if someone has been insured with them for a long time and are now retiring.

 

I owned a Medical Malpractice Brokerage firm in Pennsylvania the '90's for about 11 years. I actually do know what I am talking about.....

[polarbebe]

"You do not need a tail if you are moving from one claims-made policy to another claims-made policy. "

 

I am a bit unclear by this statement. Please clarify. Why would you not need tail insurance in this instance? Would a new claims-made policy cover any issues from a previous employment without nose insurance?

 

Thanks

[coloradopa]

"You do not need a tail if you are moving from one claims-made policy to another claims-made policy. "

 

I am a bit unclear by this statement. Please clarify. Why would you not need tail insurance in this instance? Would a new claims-made policy cover any issues from a previous employment without nose insurance?

 

Thanks

There are two types of malpractice insurance. Claims made and occurrence. Claims made malpractice protects you against any claims made for a period when the policy was in effect regardless of when the claim is made. For example if you had a claims made policy and retire and someone sues you 10 years later the policy will cover you if it was in effect when the alleged malpractice occurred.

 

Occurrence policies only cover you if the claim occurs while the policy is in effect. Same scenario the policy would not cover you since you no longer have a policy.

 

So the answer to your question is no you don't need a tail as long as their is no gap in coverage for claims made. For occurrence you do need a tail once you drop the policy or move to a new policy. This is why the occurrence policy is usually cheaper up front but then rises as the years progress while a claims made policy is relatively the same every year (covering now and future claims vs just the now). For what its worth you can sometimes get whats called a nose policy which is a tail on your new insurance for your old insurance.

[polarbebe]

Thanks for your reply.

 

I believe occurance covers you after the policy has expired and claims-made only has coverage during the policy period.

 

http://www.piam.com/Insurance_Products/claimsmade.html

It looks like I will have to carry my own malpractice indefinitely will practicing, find a reasonable costing tail insurance (from what I read it seems rather difficult) or get my new employer to get nose coverage (unlikely).

[thebrown88]

A "tail" covers the hypothetical gap in coverage when you either A. Retire, B. Switch from Claims Made to Occurrence coverage, or C. Change jobs. You do not need a tail if this is your first job because there is no prior incident time period that a claim could arise from.....you have never practiced before. You do not need a tail if you are moving from one claims-made policy to another claims-made policy. Some carriers give a "free" tail if someone has been insured with them for a long time and are now retiring.

 

I owned a Medical Malpractice Brokerage firm in Pennsylvania the '90's for about 11 years. I actually do know what I am talking about.....

 

Doing some tail research myself, some of this seems to contradict the information I have been given. Not saying your wrong, just looking for some clarification.

[workmanj]

My employer is not offering tail either. I have no idea how much extra this will cost me or where to even look for it?

[robin84]

I recently left one of my positions and because my previous employer did not have tail insurance; I am looking around now. Can anyone recommend any good insurances? Thanks.

 

 

I recommend you HDI insurance i think its better your future try this and good luck