Tail Coverage: A Guide for Retiring Physicians

As a physician, your career has been dedicated to patient care. Now, as you approach retirement, you must shift your focus to protecting your professional legacy from future malpractice claims.

Securing the right protection is essential for those with claims-made policies. In this guide to tail coverage for retiring physicians, we’ll explain how tail coverage protects you from claims that may arise from incidents that occurred while your policy was active.

What Is Tail Coverage?

Tail coverage, formally known as an extended reporting period endorsement, is an add-on to a claims-made malpractice insurance policy. A standard claims-made policy only covers claims that are made and reported while the policy is active. If a claim is filed against you after your policy expires, you will not have coverage. Tail coverage extends the reporting period, allowing you to report claims that arise in the future for incidents that happened while you were practicing and insured.

Why Is Tail Coverage Necessary for Retirement?

Retirement does not eliminate the risk of a malpractice lawsuit. A patient can file a claim years after treatment occurred, as long as it falls within the statute of limitations. Without tail coverage, you would be personally responsible for legal defense costs and potential settlements or judgments. This can put your retirement savings and personal assets at risk. Securing tail coverage is a critical step to ensure your financial security.

How Do I Obtain Tail Coverage?

Typically, you purchase tail coverage from your current insurance provider when you cancel or do not renew your claims-made policy. The cost is usually a one-time payment. Key factors that influence the cost include the following:

• Your medical specialty
• The geographic location of your practice
• Your prior claims history
• The length of the coverage period

Navigating these options can be complex. Consulting with a medical malpractice insurance agency can help you find a policy that provides comprehensive protection at a competitive rate.

Protect Your Retirement

Failing to secure tail coverage can leave you vulnerable to devastating financial losses long after you have retired as a physician. Protect your hard-earned assets, and ensure your retirement is secure. Contact Baxter & Associates today to discuss your tail coverage options and receive a personalized quote.