454 Las Gallinas Avenue,
Stand alone tail coverage.
First we must start with, “What is tail coverage”. Simply put, tail coverage or extended reporting period (ERP) is an endorsement that is added to a practitioner’s medical malpractice policy that does not extend a policy period. Rather, it extends the time a claim can be reported.
Tail coverage comes into play for scenarios such as a practitioner retires, leaves a practice or does not renew their current policy.
Standard medical malpractice companies often provide free unlimited tail coverage for practitioners who meet certain criteria such as retiring from the practice of medicine, meet a certain age criteria and have been insured with the carrier for a certain number of years.
Tail coverage is typically priced at a factor of annual premium the practitioner paid. The factor can be anywhere from 200% on up to 300% or more.
It can be challenging to beat a standard and incumbent carrier’s tail coverage quote with the rationale that the incumbent carrier has had the advantage of collecting annual premium while you are asking a new carrier to come in without having that advantage and to insure you against future, unknown claims. If this is the case, we will let you know right away.
Standard companies, when offering tail coverage, typically require that tail coverage be elected and paid for within thirty to ninety days after policy expiration.
Some things that affect tail coverage premium include the amount of time coverage was in effect, amount of annual premium paid by the practitioner and of course past claims experience.