Tail-Only for Physicians
Do you have a physician client looking to switch medical practices? Or are they looking to retire soon? If so, they will likely be facing the concept of "tail" insurance.
Why Tail Coverage is Needed
Claims-made coverage protects against professional negligence as long as a two-part test is met: First, you must have the claims-made coverage in place when the negligent act occurs at practice number one and, second, you must be covered by the same carrier when you are notified of the claim while employed by practice number two. If either test is not satisfied, the current claims-made insurance policy will not provide coverage in the event you are sued for an act of negligence that took place while you were employed by practice number one. If you leave a practice that has occurrence-based professional liability insurance, on the other hand, insurance coverage is seamless, and no tail insurance is required. The majority of insurance policies written for medical practice groups are on claims-made coverage.