In addition to these changes, the company revised its 2018 reinsurance program to reduce the quota share, and sustained the previous year's tail coverage
for natural catastrophes, while purchasing an additional $5 million of catastrophe coverage due to favorable market conditions.
When switching insurers, it may be possible to purchase "tail coverage
" under the expiring policy that extends it to cover future claims, as long as the underlying acts took place before the policy expired.
The owner "entity" may be a single-asset, single-purpose entity that will disappear into the ether after completion, so you may want to consider having an individual or entity with real assets guarantee the obligations.<br />Attention also needs to be made to completed operations coverage and, for claims-made policies, that tail coverage
is required for the whole time period allowed by the jurisdictions statute of repose (the drop-dead date to file litigation).
Contracts commonly include payback provisions related to the signing bonus, loan repayment bonus, relocation expenses, and/or medical malpractice tail coverage
(if under a claims-made plan).
If the employer does not offer you tail coverage
, then it is your responsibility to pay for this insurance, which can be expensive.
Another claims-made quandary: New York DFS rules require that claims-made policies include a 60-day extended reporting period (also known as tail coverage
) when the policy is not renewed.
(or tail insurance) is a general concept that is utilized to extend the claims made reporting time on claims made policy forms of medical professional liability policies.
Other appraisers are finding they have no coverage because they left the valuation profession or allowed their policies to expire without purchasing "tail coverage
," which would have extended the time for reporting claims on their last policy.
This additional period of time to report claims is often referred to as a "tail." Most D&O policies offer tail coverage
, though the terms, conditions, and pricing of such coverage varies.
Because a doctor's professional liability policy typically excludes coverage for such work, it behooves all medical directors to insist on being a named insured in the institution's general liability policy (to include tail coverage
), and to be informed in a timely fashion should there be a relevant change or cancellation of coverage.
A good agent will ensure that all non-renewing claimsmade policies have tail coverage
Along with discussing tail coverage
during a merger, doctors should also be wary of "anti-compete" clauses in contracts with larger hospitals and health systems.