News

Tail Coverage: What It Is and Who Needs It

7/15/2020

When you work as a healthcare practitioner through Wapiti Medical Staffing, we’ve got you covered. Our malpractice insurance will safeguard you for all services performed within your scope of practice during your Wapiti scheduled shift. In addition, Wapiti’s malpractice insurance includes tail coverage.

Are you unclear about what tail coverage is or why it’s important? The following article from our malpractice carrier delves deeper into the subject:

Whether you’re retiring from the practice of medicine or changing jobs, you won’t be leaving your risk of a medical malpractice lawsuit from your old position behind. A patient can sue you months or even years after you’ve stopped treating them. That’s where an extended reporting endorsement, or “tail” coverage, can protect you.

Medical professional liability (MPL) insurance is offered in two forms: claims-made, which covers only those events that are reported while the policy is in effect and occur on or after the retroactive date on your policy, and occurrence-based, which covers any event that occurred while the policy was in effect, regardless of when it is reported. If your policy is claims-made – and the vast majority of MPL policies are – and you are retiring or changing jobs, you probably need tail coverage.

Here’s why: Let’s say a physician had a claims-made policy in effect from January 1, 1997, until December 31, 2018. The physician retires from the practice of medicine and cancels their coverage. In July of 2019, a former patient sues the doctor based on care received in October 2018. Because the claim is made after the policy expired, it would not be covered. Without tail coverage, the physician would have to pay all their legal expenses and any indemnity payments or settlements out of pocket ... continue reading
 
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