In terms of the insurance solutions medical facilities and doctors need to invest in, there is often an overwhelming amount. In order to understand it, however, it’s important to know the insurance tail coverage definition and if it’s necessary.
What Is Tail Coverage?
You may also know tail coverage as extended reporting period coverage. This is an insurance product that extends your liability coverage beyond the end of your policy period. If you practice medicine under a claims-made insurance policy, your insurance only pays out for claims received during the policy period. Sometimes a medical injury might take months or years to manifest. In these cases, if a former patient files a claim against you, without tail coverage, you don’t have any protection.
Is Tail Coverage Necessary?
If your insurance policy does not include prior acts coverage, then you absolutely need tail coverage. In the medical field, claims are common. Even if the claims are false, you have to be able to afford legal fees. If the claims are true, then an allegation may break your business if you don’t have the coverage to pay for it.
In order to make the best decision about tail insurance is to know the insurance tail coverage definition. Once you know what it means and how it works, you can figure out whether your business needs tail coverage to thrive.