How Much Does a Tail Insurance Cost?

You must understand that it is very much possible to face a medical malpractice lawsuit even in the years after your retirement date. So while many physicians skip the “tail” of their insurance coverage, we strongly recommend you reconsider. In the end, selecting this coverage type may be cheaper than the penalties and damages that come with being an uninsured defendant in medical malpractice case proceedings. Continue reading to learn how much a tail insurance coverage might cost you and how one of the experienced New York attorneys representing uninsured physicians, at Walker Medical Law, can work to convince you of its benefits.

As a practicing physician, what type of insurance policy do I need to select?

As you may already know, as a physician, it is necessary to opt for a claims-made medical malpractice insurance policy. Simply put, a claims-made policy provides coverage when a claim is made against it, regardless of when the claim event occurred. This is a popular option for physicians since there is usually a delay between when medical malpractice events are alleged to occur and when the claimant files. With most insurance providers, this policy may cost you tens of thousands of dollars in annual premiums.

How much is a tail insurance coverage going to cost me?

It is worth mentioning that your claims-made policy may only provide coverage for medical malpractice incidents that occurred and were reported while you are insured with the carrier. This means that you are not covered for any lawsuits filed later unless you pay for tail coverage. Essentially, tail coverage is the term used for an extended reporting endorsement.

Of note, you may buy into this insurance type even if you are a retired physician. In fact, it is encouraged. This is because the statute of limitations for a medical malpractice claim is 2.5 years from the date on which an incident occurred. So basically, a claimant may sue you even if you have been retired for 2.5 years already.

Admittedly, tail insurance coverage is quite costly; often three times the amount of an annual premium. For example, if your annual premium is $10,000, then your tail coverage may cost up to $30,000. However, buying into this insurance type may still be more affordable than what it would be to face medical malpractice case proceedings as an uninsured, retired physician; between the attorney costs, court fees, and final judgment entered against you. And even if you settle, the average payout for medical malpractice cases in New York State is $460,000.

All in all, before you move forward in defending a medical malpractice claim placed against you, you must consult one of the skilled New York uninsured physician attorneys. So please reach out to Walker Medical Law today.