Is Tail Insurance Necessary?
If you have malpractice insurance, you may not think about what happens if you cancel your policy or change hospitals. What happens if you change jobs and someone files a claim against you when you are no longer covered under the former policy? Unfortunately, this situation happens often enough. This is where tail coverage comes in. If you’re worried about tail insurance cost, pay attention to the benefits.
Who Needs Tail Coverage?
Tail coverage is necessary when a policy ends up cancelled and the physician cannot secure prior acts insurance from a new carrier. Most hospitals are self-insured and don’t provide incoming physician or prior acts coverage. Tail coverage allows you to have coverage if a claim comes from your previous workplace or previous acts.
What Happens Without Tail Coverage?
Malpractice claims, unfortunately, are extremely costly. If you don’t have the right amount of coverage, you’re still liable for potential malpractice claims and defense fees. If your medical practice doesn’t have that kind of money on hand, you’ll rely on insurance to pay. If you’re worried about the cost of tail coverage, keep in mind the amount of protection it gives you. Without it, the cost of legal fees can bankrupt a business.
Tail insurance is crucial for doctors if you can’t get prior acts insurance. Even if you’re initially worried about the tail insurance cost, it can end up paying for itself if you suffer a lawsuit.