How Much Is Tail Malpractice Insurance

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Post on Nov 09, 2024

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How Much Does Tail Malpractice Insurance Cost?

If you're a veterinarian, doctor, or other healthcare professional, you know the importance of having malpractice insurance. But what about when you retire or leave your practice? That's where tail coverage comes in.

Tail coverage (also known as "run-off" coverage) protects you from claims related to services you provided before your current policy ended. It's essential to ensure you're protected from potential lawsuits arising from past patient care.

Factors Affecting Tail Coverage Cost

The cost of tail coverage can vary widely depending on several factors:

• Specialty: High-risk specialties, like neurosurgery or obstetrics, will likely have higher tail premiums.
• Years of Practice: The longer you've been practicing, the higher your risk of a claim arising from past patients, increasing your tail premium.
• Claims History: A history of claims, even if settled, will increase your tail coverage cost.
• Policy Limits: Higher policy limits naturally lead to higher premiums.
• Insurer: Different insurers have different pricing structures and risk appetites.

How to Get Tail Coverage

There are two main ways to obtain tail coverage:

• Purchase it from your current malpractice insurance carrier: This is usually the most straightforward option, as your current insurer is already familiar with your practice and risk profile.
• Purchase it from a separate insurer: If you're changing insurance carriers or your current insurer doesn't offer tail coverage, you can purchase it from a specialty insurer.

Important Note: It's crucial to secure your tail coverage before your current policy expires. This ensures uninterrupted protection.

Tail Coverage Cost Estimates

While a precise cost is impossible to determine without specific details about your practice, here are some general estimates:

• Typical Cost: Tail coverage can range from a few hundred dollars to tens of thousands of dollars, depending on the factors mentioned above.
• Cost Compared to Primary Coverage: The cost of tail coverage is often a fraction of your annual primary malpractice insurance premium. However, it's still a significant expense that should be factored into your retirement planning.

Tips for Managing Tail Coverage Costs

• Negotiate with your insurer: Explore different options for policy limits and coverage periods to find the most affordable solution.
• Consider reducing your policy limits: Lowering your policy limits can reduce the cost of tail coverage, but it also means you'll have less protection in case of a large claim.
• Purchase a shorter coverage period: If you're confident in your past patient care and don't anticipate any future claims, you might consider purchasing a shorter coverage period, which can be less expensive.

Remember: Tail coverage is a crucial aspect of risk management for healthcare professionals. It protects your financial well-being and provides peace of mind during your retirement years. Consult with a trusted insurance advisor to determine the best tail coverage options for your specific situation.