Tail Coverage
What Does Tail Coverage Mean?
Tail coverage extends the reporting period of malpractice insurance, allowing medical practitioners to report a wrongful act even after their malpractice insurance has lapsed or been canceled. However, this extension only applies to wrongful acts that occurred while the malpractice insurance policy was still in force and does not cover wrongful acts that took place after the policy ended.
Insuranceopedia Explains Tail Coverage
For example, suppose a surgeon allows their malpractice insurance to expire in July without renewing or purchasing a new policy. In August, the surgeon is sued for a procedure that went poorly in May. If the surgeon had tail coverage, they could report the wrongful act to their insurance company, even though their malpractice coverage had expired.
Tail coverage is typically expensive because it is often purchased by medical providers at higher risk of being sued for past actions and who lack active malpractice insurance for such potential lawsuits. Insurers charge higher premiums to offset the increased risk and potential costs of handling these lawsuits.
