What is Tail Coverage?
Tail coverage is a type of insurance that provides protection for physicians, including gynecologists, against
medical malpractice claims that are filed after a claims-made policy has expired. This is particularly important in fields like gynecology, where claims can arise years after a procedure or treatment was performed.
Why is Tail Coverage Important for Gynecologists?
Gynecologists often perform procedures that can lead to
legal disputes long after the patient has been treated. Tail coverage ensures that if a claim is made after a gynecologist has retired or changed jobs, they still have protection. This is crucial to safeguard against financial and professional repercussions that can arise from late claims.
How Does Tail Coverage Work?
Tail coverage extends the reporting period of a
claims-made policy. Normally, a claims-made policy only covers incidents reported while the policy is active. Tail coverage allows claims to be reported even after the policy has ended, as long as the incident occurred during the coverage period. This makes it an essential consideration for gynecologists who are retiring, relocating, or switching employers.
What Are the Costs Associated with Tail Coverage?
The cost of tail coverage can be substantial, sometimes amounting to 200% of the annual premium of the original malpractice policy. The cost is influenced by factors such as the gynecologist's history of claims, the length of time the tail coverage is needed, and the
risk profile of the procedures performed. Despite the high cost, many see it as a necessary investment for peace of mind.
When Should a Gynecologist Consider Purchasing Tail Coverage?
Gynecologists should consider purchasing tail coverage when they are leaving a practice, retiring, or if their employer or insurer changes their
malpractice coverage policy. It's essential to have tail coverage in place before the original policy expires to avoid any gaps in protection.
Are There Alternatives to Tail Coverage?
Yes, there are alternatives to tail coverage, such as purchasing a
prior acts coverage policy, also known as "nose" coverage. This type of policy is offered by a new insurer and covers incidents that occurred before the policy started. It's important for gynecologists to compare the costs and benefits of both options to determine the best fit for their needs.
How Can Gynecologists Secure Tail Coverage?
To secure tail coverage, gynecologists should first review their current policy to understand their options. They should contact their insurance provider to discuss the terms and costs of adding tail coverage. Additionally, consulting with a
professional insurance advisor can provide valuable insights into the most suitable options based on individual circumstances.
Conclusion
Tail coverage is a critical component of risk management in gynecology. It provides continued protection against claims made after a physician's claims-made policy has expired. Given the potential for late-emerging claims in the field of gynecology, having an appropriate tail coverage plan is essential to ensure financial and professional security.
