You have malpractice coverage. Good. But buried in the type of policy you hold is a question that catches a great many physicians by surprise at exactly the wrong moment: are you protected for something that happened while you were employed but does not get claimed until after you have moved on?
The answer depends on which of two policy types you have, and the difference is more than academic. An occurrence policy covers any incident that took place while the policy was active, no matter when the claim is eventually filed, even years later. It is the cleaner option, and it usually costs more. A claims-made policy, by contrast, only covers claims that are filed while the policy is still active. It is typically cheaper, but it creates a gap the moment the policy ends, which is to say the moment you leave that job.
That gap is where tail coverage comes in. When you depart a claims-made policy, a tail extends your protection forward, covering claims that get filed later about incidents that happened during your employment. Without it, you can be left personally exposed for clinical work you did months or years earlier, long after you assumed the matter was behind you.
The thorny part is who pays for the tail, because it is a contract question, and the cost can be significant, sometimes a multiple of your annual premium. Depending on the agreement, the responsibility might fall on the employer, on you, or be split between you. The terms vary widely from one contract to the next, and they are rarely the part of the offer that gets the most attention.
This is precisely why tail coverage tends to surface during a job change, when a physician is already busy negotiating a new role and untangling the old one. Discovering an unexpected six-figure tail obligation in the middle of that transition is the worst possible time to learn about it, and a far weaker position to negotiate from.
The lesson is simple and worth carrying with you: know your policy type and your tail terms before you sign a contract, and revisit them again before you leave one. A few minutes of clarity up front can save you from an unpleasant surprise at the very end.
Because tail coverage sits at the meeting point of insurance and your employment contract, it deserves a careful read alongside qualified counsel, including an attorney for the contract language itself. We're here to take care of you, and our team at Compass can help you understand the coverage side so nothing catches you off guard during a move.
