Market for Medical Malpractice Tail Insurance

As we approach the mid year mark in 2014 physician hiring does not seem to be slowing down. Although many reports show that bringing physicians in house is not as profitable as health system hopes they continue to do it. In many ways physicians have significantly more options then when the consolidation spree started three or four years ago.

Doctors and surgeons are faced with one of the following scenarios:

  1. Their new employer picks up their prior acts, saving them tens of thousands of dollars they would have spent on a tail. This option is often only available is moving in state and to a smaller employer that does not have a large self insured retention. Many hospital systems have multi-million dollar deductibles and do not want to risk their system’s balance sheet by bringing on risk from outside the facility.
  2. They purchase tail insurance:
  • Many traditional carriers are beginning to offer payment plans. After losing millions to lower priced competitors they have tried to find ways to compete, by allowing physicians to pay over the course of a year or two they have found a way to hold on to customers at a higher price than other carriers who require payment in full are charging.
  • They purchase stand alone tail insurance from a third party carrier. OneBeacon, Ironshore, CNA, Hallmark and Berkley are all highly rated insurance carriers offering stand alone tail insurance through specialist brokers.
  • Some desperate individuals are buying insurance from one of the dozen unrated Risk Retention Groups (RRGs) offering the coverage. These folks risk future assessments by the carriers, potentially unpaid claims and issues in credentialing when future employers discover a gap in coverage (or a potential gap in coverage due to the unstable nature of the companies).

The best thing one can do to prepare for the tail decision is to plan early. Tail prices from standard carriers are filed and can potentially be negotiated years before a decision must be made on leaving private practice and purchasing tail. The costs of staying independent are growing every day, most are shocked when the tail bill comes as a final slight from the insurance market.

Explore tail insurance options at InsureTail.com today, the expert brokers are standing by to help.

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Article on Unseen Liabilities

Here is a good article on how unseen liabilities should be considered when purchasing medical malpractice tail insurance.

When physicians are leaving private practice for employment they should be extra careful to ensure that all liabilities are left behind.

New Year Planning

As the new year approaches and you review your current financial situation, take a realistic look at whether joining a larger practice or becoming a health system employee is a  possible scenario. If so, contact InsureTail.com today to discuss positioning your practice to save money and mitigate tax hits on the sale.

Happy Thanksgiving

Many physicians are thankful this year that they were able to leave private practice and secure affordable tail insurance to protect their assets.

Visit InsureTail.com today!

Video Overview of Tail

Good video overview of how tail insurance works, visit InsureTail.com to learn about your medical malpractice tail insurance options.

Tails, tails everywhere

InsureTail.com is writing all kinds of stand alone tail policies. OBs, nurse practitioners and everyone in-between!

Stand alone tail deals

Lots of physicians are buying stand alone tails this month, things are really heating up! Visit insuretail.com today to discuss you options.

Stand Alone Tail Insurance Options

With mergers heating up quickly in the physician business plenty of physicians are joining into large practices or agreeing to be employed by health systems. These situations mostly cause the need to purchase extended reporting period insurance. Because most malpractice insurance is purchased on a claims made policy claims are triggered when the event is sent to the insurance company – not when the accident happens. Because of this, when a physician stops buying insurance they must buy a tail endorsement to cover incidents that have happened but are not reported to them or their insurance underwriter. Without this policy all the money spent on premiums goes to nothing and a physician is uninsured for prior acts.

Most medical malpractice carriers quote a free ERP on retirement. Notwithstanding, healthcare reform is causing consolidation in the industry and numerous doctors are merging groups or exploring Managed Care employment before retirement. This causes the equipment to purchase ERP insurance,Extended Reporting Period insurance. Insurance companies are unadaptable and don’t like to waver on their state filed rates, they will provide a ERP quote – with no other options. With combination heating up many companies have entered to offer an alternative option.

Many malpractice circumstances are according ten or more years after the event. Most jurisdictions have a statute of limitations that controls the timeframe a suit can be brought. It is important to read your jurisdiction’s laws and how your past patients can bring lawsuits. If you treat children there may be 20 years or more for a potential lawsuit to be brought. Still, if you don’t treat minors the term to bring a claim is possibly significantly shorter.

Most admitted doctor insurance companies offer unlimited ERP coverage, which means a suit can be brought at any point. The alternative option purchasable gives you the choice of purchasing a shorter time period of coverage such as 3 years. This have the potential to save a significant amount of money.

An alternative reason these companies can offer a cheaper option is adverse selection. Insurance is supported on the purpose that those who purchase it the most are most possible to buy it. By explaining your employment situation to the insurance underwriters you can oftentimes drive a more economical deal.

There are various reasons a physician may move from private practice and be required to purchase a ERP contract. A physician leaving a group or leaving a practice to start employment by a new partnership or hospital causes this requirement. Also, a practice merging with another group or being acquired by a health system makes the purchase of a tail essential. A group is oftentimes obliged to get Extended Reporting Period coverage for a physician who has suspended practicing. Anyone recruiting a brand new doctor and analyzing whether to buy a tail for preceding potential events of the doctor or provide insurance coverage for the prior-acts.

Some medical malpractice insurance brokers can offer options to the MD who is leaving a practice or to the entity they are merging with. The quantity of the rear tail requisition expenditure is ofttimes deducted from an expected salary bundle. Using our company to change this outlay puts more cash into your pocket.

Because of the requirement for tail coverage is expected employers examine closely at a physician’s employment and insurance history. Any gaps or questions into the strength of coverage will damage a physician’s chances of employment. Don’t gamble with your future, save money and get the proper tail coverage in the process.

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