BLOG

Hilb Healthcare, formerly Keane Insurance Group 5/30/25 A Comprehensive Guide to Tail Coverage in Medical Malpractice Insurance Understanding the ins and outs of tail coverage is essential for healthcare professionals such as physicians, surgeons, nurse practitioners, and practice administrators. When evaluating malpractice insurance options, three core components should be carefully reviewed: Prior Acts , Policy Type , and Cost . Among these, tail coverage —formally known as an Extended Reporting Endorsement—plays a critical role in maintaining protection after a policy ends. What Is Tail Coverage? Tail coverage extends the window in which claims can be reported, even after your medical malpractice insurance policy has expired. This means it will still cover claims resulting from incidents that happened while the policy was active (after the retroactive date), as long as those claims are filed during the extended reporting period. Tail coverage is essentially an add-on to a claims made policy and may last for a set period (commonly 2–3 years) or indefinitely. However, this added protection comes at a price. How Much Does Tail Coverage Cost? The cost of tail coverage can vary widely between insurers. On average, it ranges from 2.5 to 3 times the annual premium of your malpractice policy. Given its cost, it’s wise to explore your options. Partnering with a seasoned medical malpractice insurance broker can help you compare policies and secure quality tail coverage at a more competitive rate. Claims Made vs. Occurrence: Why It Matters Whether you need tail coverage largely depends on the type of insurance policy you have. Occurrence policies cover any incident that happens during the policy period—regardless of when a claim is filed. Even if the policy is no longer active, it still protects against past incidents. The downside? If the insurer goes out of business, you could be left vulnerable. Claims made policies , by contrast, only cover claims filed while the policy is active. Once the policy ends, so does the protection—unless you purchase tail coverage. This endorsement keeps coverage in place for incidents that occurred during the policy but are reported later. Keep in mind that not all tail endorsements are equal—some may be limited and not cover all past acts. Always review the specifics carefully. The Importance of Prior Acts Coverage Medical malpractice claims can surface years after an incident, making Prior Acts coverage a vital part of your policy. This provision ensures that claims tied to earlier events are still covered—even if they’re filed much later. For instance, if a patient files a claim in 2024 for a procedure done in 2021, your current claims made policy can respond—as long as the policy includes prior acts coverage going back to your retroactive date (often the date you first began practicing). Maintaining that same retroactive date with any future policy is crucial for continuous protection. When Is Tail Coverage Necessary? You’ll need to consider purchasing tail coverage when a claims made policy is canceled or not renewed—unless your new policy includes prior acts coverage. A few common scenarios where this comes into play include: Changing Employers If your new employer provides malpractice insurance, make sure it includes prior acts coverage. If it doesn’t, you’ll need to buy tail coverage to remain protected from past claims. Retirement, Death, or Disability In these situations, many insurers offer free tail coverage. However, eligibility and terms can vary, so check the fine print in your policy. Why Tail Coverage Matters Without tail coverage or a new policy that covers prior acts, healthcare providers could face claims with no insurance to back them. The financial and reputational risks of this gap can be significant. Work with an Expert Broker Navigating malpractice insurance, especially tail coverage, can be complex. An experienced medical malpractice insurance broker can simplify the process—helping you evaluate options, compare quotes, and secure appropriate protection at the best possible price. Final Thoughts Tail coverage is a crucial safeguard for medical professionals with claims made policies. It ensures continued protection for past incidents once a policy ends. While it can be costly, the peace of mind and financial security it provides make it a worthwhile investment. Understanding your policy type, knowing your retroactive date, and ensuring seamless coverage through tail or prior acts provisions are key to avoiding gaps. Always consult with an insurance expert to make the most informed decision for your practice and future.