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Physician Contract Glossary · Malpractice & Insurance

Tail Insurance

Tail insurance covers claims filed after a claims-made policy ends, for incidents that happened while it was active.

Tail insurance, formally an extended reporting endorsement, fills the gap a claims-made policy leaves when it ends. It covers claims that come in after you leave for care you provided while covered. It is paid as a one-time lump sum at departure, and it typically costs one and a half to two times your annual malpractice premium. Occurrence policies do not need it.

WHAT TO WATCH FOR

Who pays the tail is one of the most negotiable and most expensive terms in the contract. Get it in writing, and consider negotiating that the employer covers it, or that the tail obligation disappears if they terminate you without cause.

Related terms

Stop being recruited. Start choosing.

You are about to sign something the senior people in your program signed without reading.

They had no guide either. You do. Start with the option that costs you nothing: see every practice that is actually out there before anyone hands you a contract.

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