Prior Acts Coverage - Physician Contract Glossary

Prior Acts Coverage

Definition

Insurance that covers incidents that occurred before the start date of the current insurance policy.

Examples in Context

"Physician's new employer agrees to provide prior acts coverage for any claims arising from incidents that occurred during Physician's previous employment."

"This policy shall include coverage for prior acts with a retroactive date of July 1, 2020."

Implications for Physicians

• Protects you if a claim is filed for incidents that occurred under a previous employer or policy.
• May reduce or eliminate the need to purchase costly tail insurance.
• Ensures seamless coverage during employment transitions.

Negotiation Tips

• Ensure the retroactive date aligns with the start of your previous policy to avoid gaps.
• Confirm if the employer will pay for prior acts coverage or if it’s your responsibility.
• Request written confirmation that prior acts coverage applies to all past services.

Red Flags and Pitfalls

• Exclusions for known or previously reported incidents.
• Retroactive coverage that doesn’t align with the date you started your previous job.
• Employers requiring you to pay for prior acts coverage without notice.

Related Terms

• Claims-Made Policy
• Tail Insurance

FAQs

• “Do I need prior acts coverage if I had an occurrence policy?”
  • No, occurrence coverage already protects you for past incidents without additional coverage.
• “Can prior acts coverage include incidents from my residency?”
  • Yes, if requested and documented in the policy’s retroactive date.
• “What if my previous employer had self-insured coverage?”
  • You may still need prior acts coverage since self-insured plans often end when you leave the employer.

Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.