A Physician's Guide to Medical Malpractice Tail Insurance

By Nana Korsah MD

Have you ever felt overwhelmed with the transition from one job to another? The pressures that come with this life change is somewhat unavoidable, but there is something that is sure to ease the process, and that is tail insurance coverage.
 
So, what is tail insurance? According to www.studentdoctor.net, “tail coverage is an extended reporting period endorsement, offered by a physician's current malpractice insurance carrier, which allows an insured physician the option to extend coverage after the cancellation or termination of a claims-made policy.” In this guide, I will get into how you can set up tail coverage with ease, if needed, and how to discover different types of malpractice insurance. This is information that I wish my coaching clients knew sooner, but my hope is that this will prevent the stress of tail malpractice insurance coverage.

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The two basic types of medical malpractice insurance are “claims-made” and “occurrence.” The claims-made policy will only provide coverage if the policy is in effect. In other words, if a physician has a claims-based policy and decides to leave his/her job, he/she will need tail insurance to extend coverage for a significant period of time in case a claim is made. On the other hand, occurrence-based insurance covers a physician while on the job and after they leave, so a tail insurance policy is not needed.
 
Fortunately, after my Nephrology fellowship and prior to applying to jobs, recent graduates advised me to take jobs with occurrence insurance, so that is what I did. I am glad I took their advice because when it was time to leave my first job, I did not have to worry about tail coverage. However, not everyone has been as fortunate. Some of my former colleagues feel stuck at their jobs simply because they cannot afford to buy tail insurance coverage.

If you happen to have a job that has a claims-made policy, then you will need tail insurance and I have a few recommendations for you. Firstly, look at your contract to see if your current employer will cover tail insurance when you leave. If it is not covered, consider negotiating for that to be included in your contract. Also, determine how much tail is going to cost if your employer will not cover it, and put away a tail freedom fund to allow you the flexibility to leave a job without worrying about tail insurance costs. You can find this information by calling your insurance career. If none of these work for you, you also have the option to ask your new employer to cover your tail, and strictly stick to jobs that are willing to do that.

In conclusion, when it comes to malpractice insurance, pick a job that has an occurrence-based policy. If you should decide to go for a claims-made policy, make sure you have established one of the following: your employer will cover tail insurance when you leave, you have a tail coverage fund, or your new employer will pay for your tail policy. I encourage you to use these simple, practical solutions at your disposal because no one should be imprisoned at a job because of tail insurance.

About the author: Nana Korsah, MD is a former Nephrologist turned locum Hospitalist. Board certified in Internal Medicine. She has side gigs as a Telemedicine Physician, Neora skincare/wellness company brand partner, a certified life, and financial coach for physicians who want to pay off debt and live wealthy lives quicker. She helps physicians who want to enjoy the lives they sacrificed so much to create, but they don't know where to start. She helps them build wealth and say yes to the lives they want using the magic of personal finance and multiple streams of income.

You can contact Nana Korsah, MD through her website www.mdworklifebalance.com or via email at [email protected]