Medical Malpractice: Is the Doctor Insured?

Each doctor has a malpractice insurance policy and like any other insurance policy this one can expire or be cancelled. In such cases where the insurance policy expires or is cancelled, it is important to know whether or not the doctor has bought additional insurance to cover claims after the policy has expired. Such additional insurance coverage is called “tail coverage”.

A standard “claims-made insurance policy” protects the doctor from claims that are based on an incident that happened and was reported while the policy was in effect. Conversely, tail coverage protects against medical malpractice claims that are reported after the doctor’s standard claims-made insurance policy has expired or was cancelled. Therefore, tail coverage is insurance coverage that bridges the gap created by the transition from the old insurance policy to the new insurance policy.

Important points to note on tail coverage are:
1.Tail coverage only protects from acts that were committed during the original policy period and not for claims that fall within the period of tail coverage.
2.Tail coverage may have a different limit of liability than the standard claims-made policy had.

To understand how tail coverage works, note the following example:
Doctor Gordon’s insurance policy is in effect from January 1, 2005 to December 31, 2015. Amy, a patient of Doctor Gordon, alleges that Doctor Gordon committed malpractice on June 13 2015, but Amy only filed her lawsuit on February 18, 2016. At this time, Doctor Gordon’s insurance policy had expired and his new insurance policy does not cover prior acts. Unless Doctor Gordon has bought tail coverage he will not be insured for Amy’s claim.

The tail coverage is crucial for both Doctor Gordon and for Amy because if the doctor is not covered by the insurance he may personally be liable to pay damages to Amy and even if Amy’s lawsuit is successful, collecting judgement against an individual doctor is harder than collecting from an insurance company.

Generally, tail coverage is very expensive as it is paid over and above the standard insurance premiums; at times, it may be between one hundred and fifty percent to two hundred percent (150-200%), over the price of a mature claims-made policy. However, there are other options available to doctors. Some insurance companies offer:
--Extended reporting – which is less expensive than standard tail coverage.
--Limited tail coverage – as compared to an unlimited term.
--Nose coverage – this covers prior acts and is offered by the new insurance for acts that occurred before the new insurance came into effect. It is the opposite of tail coverage, but provides the same coverage.

It must be noted that not all options are available to all doctors. Some insurance companies will not offer nose coverage to doctors who have had several claims filed against them or who practice in highly litigious fields.

If you are looking for Anchorage attorneys who handle medical malpractice practice, be sure to seek out renowned professionals who have experience handling personal injury claims relating to medical malpractice.

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