Tail Coverage

Malpractice claims often are made years after the care is rendered, and you want to be protected. You can benefit from tail coverage, an extended reporting endorsement, to protect your important identity as a physician. Tail coverage permits an insured to report claims that are made after the policy has expired or canceled, if the alleged wrongful act took place during the expired or canceled policy period.

In certain instances, tail coverage may be provided at no additional charge. In the event this is not the case, consider the long-term benefits of purchasing tail coverage. It may be helpful for:

• Leaving the practice of medicine
• Retirement
• Moving to a hospital or facility

If you do not renew a claims-made policy, tail coverage may be necessary to protect against claims submitted after the last policy expires or is canceled.

Coverage with a claims-made policy is determined by when a claim is reported, and coverage with an occurrence policy is determined by when the incident occurred.

A claims-made policy offers:

• Protection for claims reported when the policy is in effect, provided the incident happens on or after the claims-made retroactive date (usually, the date of the first claims-made policy).
• A “clean slate” of limits at policy renewal, significantly reducing the chance of exhausting the total aggregate limits when compared with occurrence coverage.*

An occurrence policy offers:

• Protection for claims arising during a policy period.
• Coverage under the policy limits in effect at the time of the incident—even from several years prior—no matter when a claim is reported. As such, these limits may not reflect the risk faced at the time of the claim.
• Coverage for claims reported after the policy term expires. You cannot adjust the aggregate limit from future claims to address changing protection needs.

Claims-made coverage eliminates some of the uncertainty created by the long-tail nature of medical professional liability claims (i.e., how long it takes a claim to be resolved as measured from the date of the originating incident). It may offer you more flexibility and enables ProAssurance to provide coverage rates that more accurately reflect your healthcare environment and potential losses.

*When you purchase a policy, you receive a set of limits—both per claim and per policy period. So, with $1 million/$3 million limits, you have $1 million maximum coverage per claim and up to $3 million coverage per policy period (usually one year) in the event of multiple claims.

Your ProAssurance claims-made policy provides automatic tail coverage for death or disability. Insureds also receive tail coverage upon full retirement when continuously covered by ProAssurance on a claims-made basis for a minimum of five years.*

For large healthcare organizations, ProAssurance offers tail coverage on both an admitted and excess basis. Your policy is updated annually through one policy and invoice to reflect changes, including physicians leaving your practice. You can choose from a variety of personalized coverage options, including a deductible, subject to underwriting approval.

*Please refer to your policy for specific terms and conditions.

Tail coverage is necessary upon retirement or otherwise ceasing the practice of medicine. If you are moving coverage from an occurrence policy, tail coverage is not necessary. If you are moving coverage from another insurer’s claims-made policy, this coverage may be handled under the prior acts coverage of the new claims-made policy.

With a ProAssurance policy, tail coverage is available—whether for a premium charge or at no additional cost.

If you have questions, please call your ProAssurance agent, account executive, or Business Development representative.