tail coverage

Advanced Practice Columnist / Guide · Nov 28, 2015

I personally would recommend just getting a separate policy on your own even though you're covered by your employer's policy especially if there is no tail coverage. Call any of the following for a quote:

Malpractice Insurance for Nursing Professionals - NSO

Professional Liability Insurance | Malpractice Coverage | Proliability > Professional Liability Insurance > Healthcare Professionals

https://www.cmfgroup.com/nurse-practitioner/

There are other companies not listed above.

RiskManager · Nov 29, 2015

As a rule of thumb, tail coverage for a claims-made policy is around 150-200% of the last year's premium. So if in the year you leave employment, the employer is paying $ 5000 for your coverage, the tail will be $ 7500 to 10,000.

This is a common requirement for new providers; the intent is to keep them from job-hopping.

phillycpnp-pc, MSN, RN, NP · Dec 1, 2015

I'm leaving my my first NP job in less than 2 weeks and in my contract I have to purchase tail coverage upon leaving. my employer pays 50%. It's around 6,000 and I have to pay 3,000. I didn't like this part of my contract when I first joined the practice but I didn't think I would be leaving after almost 2 years.

Olga30 · Dec 2, 2015

Thank you for your respond! Did you have to purchase your tail coverage from your employer's malpractice insurance or did they let you get one elsewhere? I will be working in the dermatology clinic and performing some derm procedures so I am nervous the tail coverage might be very expansive. I asked to get at least an approximate number and am waiting to hear back. Do you think it would make sense to purchase my own malpractice insurance instead?

thanks!

Olga30 · Dec 2, 2015

Thank you! A great idea and I will ask them if I could do that. It seems that it will be cheaper and better for me.

RiskManager · Dec 2, 2015

You can only buy tail coverage from the malpractice insurer that issued the original policy. You cannot buy a tail from another insurer. You can buy what is called 'nose' or 'prior acts' coverage from another insurance company if you are switching your coverage to that insurer. 'Nose' coverage from the new insurer acts like tail coverage from the previous insurer: it covers you for claims reported after the previous insurance is cancelled. However, not all insurers write 'nose' coverage and it is more expensive than tail coverage. Buying a tail from the original insurer is always a better bet.

And having your own policy will not replace the need for tail or nose coverage. If you don't buy a tail, your own policy will not kick in for any claims coming out from the insurance provided by the employer. Having your own policy is excess coverage over the employer's policy, and it is therefore rarely triggered for any claims. The employer's policy is primary.

Also, your employer will insist that you be covered under their policy if you are an employee. If you are an independent contractor, you can buy your own insurance in place of the employer's coverage, but you will be paying more, and directly for it. As opposed to having the employer pay for your coverage.