Tail Coverage

Tail coverage, or extended reporting endorsement, is the name of an endorsement that is added to a claims-made policy in order to extend the coverage to cover claims that may be filed after the policy is cancelled. The extended reporting endorsement, or tail coverage, is offered as an option in your medical malpractice insurance for additional premium.

Summary of Medical Malpractice Tail Coverage 

Tail coverage only applies to medical professional liability claims-made policies – not occurrence policies. When a claims-made policy is cancelled or non-renewed by a physician or group, the medical malpractice insurance company will offer a tail insurance quote. Policyholders will then have a limited amount of time to elect or reject the endorsement.

Liability Limits for Tail Coverage

The liability limits offered for tail insurance are typically the same as the original medical malpractice claims-made policy. So, if the underlying policy has limits of $1M/$3M, the tail coverage quote would be offered at those limits. However, it is possible in some cases to purchase a different limit, which can provide premium savings. Limits vary by state and/or hospital requirements, but are usually available at:

• $200,000/600,000
• $500,000/$1,000,000
• $1,000,000/$1,000,000
• $1,000,000/$3,000,000

Provisions for Free Tail Insurance

Most claims-made policies have a provision for a free tail insurance in the case of death, disability, or retirement, provided the physician has been insured with the medical malpractice insurance company for a certain length of time, which is usually 3 – 5 years, and has reached retirement age.

When is Tail Coverage Not Offered?

Medical malpractice insurance companies do not offer tail coverage if the policy has been cancelled for non-payment. 

Definitions