If your current coverage is written on a claims made platform, you will have a prior acts/retroactive date that defines how far back in time a loss can occur for your current policy to cover the claim. For a claim to be covered (a carrier to provide a defense to you), you must have a current policy in place to provide the protection. If you are in a situation where the claims made policy will not be continued, then you need to either purchase a tail OR continue coverage that will include your prior acts date.
Employer Isn’t Paying For Tail Coverage
- Determine your prior acts/retroactive date – It can be found on a certificate of insurance. It’s important when speaking with insurance advisors that you know what your prior acts/retroactive date is.
- Contact the current malpractice carrier and request a quote for tail coverage. While you are on the phone with them, ask for a claim history (loss run). You are going to need this when you are applying for replacement coverage or for your new employer.
- Check with an insurance expert to obtain options like a stand-alone tail and individual coverage.
- Weigh ALL your options.
Extending Your Tail Coverage
- Contact your insurance carrier and request a quote for tail insurance.
- Secure stand-alone tail quotes from an experienced malpractice insurance agent.
- Secure a replacement policy that will continue your prior acts coverage from an experienced malpractice insurance agent.
Tail Coverage Considerations
- Be ready -- tail coverage is not inexpensive.
- Plan to pay the cost in full within 30 days (some carriers may give you up to 60 days) from the last day of coverage.
For more personalized and immediate support, contact ACEP’s partner:
sharon.ruth@usi.com | 302.397.0173 | www.usiaffinity.com/acep
