With the rise of hospital employment offers in the country, The Doctors’ Insurance Agency is happy to assist physicians with the important purchase of a ‘stand alone’ tail insurance policy.
Tail Insurance Covers you for claims not yet known or reported, based on events that occurred in the past. A tail insurance policy can run for 18 months, or as long as indefinitely. The reason we describe this as a ‘stand alone’ policy is that normally, these policies are purchased when the last policy in force is cancelled and the tail cost is triggered (normally within the first 60 days). The timing of purchasing tail is integral to the product acquisition. This is because the longer you wait, the more likely there is (or at least, the perception is) that an event has already occurred. This theory is what underlies the idea of a 60 day window. Like everything in the world of medical malpractice insurance, timing is key. The quicker you respond, the fewer gaps in a coverage presentation, the more likely you are to have success in obtaining the insurance.
It is important to note that procuring a stand along tail policy is not a guarantee, the underwriter will want a warranty that there is, in fact, nothing ‘brewing’ and the underlying practice history and specialty and length of time of course will have an impact on the premium.
Now is a good time to be in the market for tail insurance because hospitals will also purchase more tail coverage as newly hired physicians move away from their premiums policies. Expect insurers to capitalize on this opportunity, which means that these policies will be a little bit more accessible to physicians who need them.
Some not surprising data supports that our physicians will need this coverage, Hospitals will hire more physicians in the coming years, they will staff facilities, increase access to specialists. In 2010, Community Hospitals hired 91,000 physicians.
Physicians working for small, rural hospitals or inner-city corporate chains, individually owned facilities or large surgery centers will possibly be put in to the market to clear their past claims history so that they can sign their new employment contract.