Tail Insurance - Physician Contract Glossary
Tail Insurance
Definition
An extended reporting endorsement that allows you to file malpractice claims after your claims-made policy has ended.
Examples in Context
“Physician must purchase tail insurance upon contract termination to ensure coverage for post-employment liability claims.”
“Employer agrees to cover the cost of tail insurance if Physician is terminated without cause.”
Implications for Physicians
- Protects against malpractice claims filed after your employment ends.
- Failure to purchase can leave you personally responsible for claims.
Negotiation Tips
- Negotiate for the employer to pay for tail insurance if termination occurs without cause.
- Request a fixed contribution or stipend toward tail costs if full coverage isn't possible.
Red Flags and Pitfalls
- Contract language that requires you to pay for tail insurance under all circumstances.
- Failure to specify the duration of required coverage.
Related Terms
FAQs
- "How long should tail insurance last?"
- It should cover the full statute of limitations for malpractice claims, commonly 2–3 years or longer.
- "Is tail insurance a one-time purchase?"
- Yes, you typically pay a single premium for coverage lasting multiple years.
- "Can tail insurance be negotiated in my contract?"
- Yes, many employers agree to cover or share the cost if you negotiate before signing.
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.