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tail coverageJoe Segen2016-12-27T13:49:57+00:00
Tail coverage (TC) is a malpractice insurance rider or supplement to a claims-made policy that provides coverage for an incident that occurred while the insurance was in effect but not filed before the insurer-policyholder relationship ended.
TC is generally necessary whenever an insured covered by a claims-made policy changes carriers, retires, becomes disabled, or dies. Physicians may retain tail coverage until the statute of limitations–a period of 2–3 years has run, which covers malpractice claims that are initiated after a physician has moved to another state or retired–the so-called “tail period”. The cost of TC is equal to at least one year of malpractice premium coverage and may be multiples thereof; in the US, malpractice insurance costs from $4000 to $200,000/year, a fee that is a function of location–Florida, California, and NY State are highest and the relative risk for lawsuit in a specialty–neurosurgery, orthopaedic surgery, and obstetrics are often the most expensive. The standard claims-made malpractice insurance policies are less expensive, but don’t cover tail periods.