There are several professions where legal liability follows an individual even after the person leaves their job or terminates their malpractice policy. It is common for physicians to encounter lawsuits long after they have treated a patient, and the gap in coverage from when services were rendered to the time of reporting can be filled with a tail insurance policy.
Coverage Under Medical Malpractice
Occurrence and claims-made are two types of medical malpractice that physicians can use to shield themselves from the financial responsibility of malpractice liability claims from former or current patients. With an occurrence policy, the coverage period will address any claims that had an origin date of when the policy was in effect.
Claims-made policies will only cover claims that are made while the physician is carrying the policy. With the potential for claims to arise from care situations that are not covered by one of these policies, physicians should seek a tail insurance quote for additional protection.
Costs Without Tail Coverage
Trying to address litigation without insurance coverage is a financial disaster. Having to hire a lawyer and pay out damages in a settlement could climb upwards to the millions of dollars. While you may be hesitant and balk at the expense of malpractice tail insurance, you don’t want to be caught without it. Patients, no matter how well you know them, can create financial stress long after you have left your practice.