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If you switch carriers, move to another state or retire, then you may need to
consider purchasing a reporting endorsement, or "tail" coverage from
your existing carrier. This covers you for new claims first reported after a
claims-made policy is cancelled, but which allege negligence in a past event.
The tail can be expensive and often must be paid for within a month of
cancellation, although some companies allow payments to be spread over two or
three annual installments.
Most doctor-owned companies offer:
- Free tail coverage in the event the doctor becomes permanently disabled or
dies while insured.
- Free tail coverage after retirement, provided a minimum enrollment period
is met.
- "Prior acts" coverage for doctors who change from one
doctor-owned carrier to another.
The rules vary with each company. Check on cost, scope and limits of
coverage, as well as underwriting requirements.
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