Tail insurance is a type of malpractice insurance that provides coverage for claims that arise from incidents that occurred during a previous policy period, but are filed after the policy has expired. It’s often referred to as “extended reporting period” insurance. Clifton Insurance Agency, Inc. has been offering this coverage for many years.
Here’s how tail insurance works:
- Gap in coverage: When a healthcare provider switches malpractice insurance companies, there’s a potential gap in coverage between the expiration of the old policy and the effective date of the new one. Tail insurance bridges this gap by providing continued coverage for claims that may arise from incidents that occurred during the previous policy period.
- Customizable: Tail insurance can be customized to meet the specific needs of the healthcare provider. The coverage period can be extended for a certain number of years, and the limits of liability can be adjusted to match the provider’s risk tolerance.
- Cost: The cost of tail insurance depends on several factors, including the length of the coverage period, the limits of liability, and the provider’s risk profile.
In summary, tail insurance is a valuable tool for healthcare providers who want to protect themselves from potential claims arising from incidents that occurred during previous policy periods. By purchasing tail insurance, providers can ensure that they have adequate coverage in the event of a claim, even if they have switched insurance companies.