Choosing an Extended Reporting Period (ERP) policy, or “tail coverage”, is one of the most important — and complicated — decisions surgeons must make when changing employers or transitioning to private practice.

As a Florida surgeon, you also must understand how Florida’s statutes of limitations in malpractice cases and other factors could affect your choice of tail malpractice coverage.

This is where an independent medical malpractice insurance broker’s expertise is crucial. Independent insurance brokers are experts in finding the best tail insurance options and rates from “A” rated carriers that also meet the needs of specific employment situations and surgical specialties.

We asked our team of insurance brokers to list the most commonly asked questions we get about tail insurance from Florida surgeons – plus give you the answers to help you get ready for a personalized consultation with SURGPLI.

When the Florida Supreme Court ruled that the state’s malpractice damage caps for economic and non-economic damages were unconstitutional, Florida surgeons without adequate malpractice coverage became much more vulnerable to severe financial loss in cases found for the plaintiff.

That’s one important reason why surgeons need tail insurance – to protect you from personal liability for any future malpractice claims made on incidents that occurred during your previous employment in Florida.

Your employer-provided malpractice coverage ends on the last day of your employment. If that policy was underwritten on a claims-made basis, as most are, you would be exposed to a lawsuit if a former patient files a claim against you before your new policy at your next employer or private practice goes into effect.

Tail insurance provides retroactive malpractice coverage for any claims made on incidents occurring from the first date of employment with your former employer.

The best thing to do is to speak with a SURGPLI insurance broker about tail coverage options BEFORE you resign from your current job (and your employer’s malpractice policy expires). That way, you’ll be assured that your tail policy goes into effect immediately after your previous policy ends.

Typical scenarios that drive the need for tail coverage include:

• Changing employment from one Florida-based hospital or medical group to another.
• Transitioning from Florida-based employment to opening a private practice.
• Moving from Florida to a different state for employment or to open a private practice.

Your SURGPLI insurance broker will always consider your individual employment situation when recommending options for tail policies and carriers.

Lifetime tail coverage policies are available, and although more expensive than annual policies with specific end dates, you may want the peace of mind of continuing coverage.

An independent insurance broker will work with you to determine the length of tail coverage that provides the best protection in light of Florida’s current statute of limitations for medical malpractice claims listed below – and meets your comfort zone for risk:

• 2 years – Ordinary negligence carries a statute of limitation of two years from the date the harm from the malpractice was discovered or could reasonably have been discovered.
• 4 years – The statute of limitations might be extended to four years in cases where the injury was not immediately discoverable.
• 7 years – For cases that involve intentional misrepresentation, concealment or fraud, the statute of limitations is seven years.
• 8 years – For minors, the statute of limitations is different. When an action is being brought on behalf of a minor child, a medical malpractice claim may be filed up until the child’s eighth birthday.

Yes. Tail coverage is retroactive from the first date of employment with your former employer, regardless of the location of your new job.

For example, say you started working for a Florida clinic on March 1, 2017. Your last day of employment and employer-provided malpractice coverage was January 15, 2023. You now practice at a hospital in Illinois. On June 1, 2023, a former patient files a malpractice claim regarding an incident that occurred in 2021 while you were practicing in Florida. Your tail policy would cover that claim.

Even in states that don’t mandate medical malpractice insurance, it is always in the best interest of Florida surgeons to have a medical liability policy to protect against the likelihood of being sued.

Why? If convicted in a lawsuit, you could face devastating financial losses since Florida does not cap the amount of compensation that can be awarded for non-economic damages in medical malpractice claims. So yes, you would still need tail coverage to manage the financial risk of having a claim made against you for an incident that happened during the time you worked for your former employer in Florida.

Consider the following example of a surgeon who changes employers, but does not have tail coverage:

In 2022, a claim is brought against the surgeon for an incident that happened while working for the previous employer in 2015. Because there is no tail coverage in place, the surgeon is personally liable for paying all of the legal costs and indemnity payouts at trial.

A tail policy would have covered that claim, and legal defense would have been provided by the carrier.

The cost of tail insurance is typically 200% of the yearly premium you were paying for your policy at your previous job. However, SURGPLI can give you many more options than your former employer’s tail insurance plan.

Our independent medical malpractice insurance brokers have helped Florida surgeons save significantly on tail coverage. We give you our best recommendations of carriers and policies that best fit the needs of your specialty and practice environment. Your SURGPLI insurance broker will do all of the research for you to find competitive rates from “A” rated carriers with a stellar track record for defending their policyholders in malpractice cases.

SURGPLI insurance brokers are ready to answer your questions and more! If you are a Florida surgeon planning to change employers or start a private practice, don’t wait. We can help you secure the right tail coverage and rates for your employment situation and specialty.

Are you planning to change employers soon, or intending to leave a medical group to open your own private surgical practice?

Exploring your options for Extended Reporting Period (ERP) coverage, also known as medical malpractice “tail” insurance, needs to be a priority long before you even turn in your resignation.

The first thing you need to know is that your employer will likely offer you a tail coverage option, but at a premium that typically runs 200% of the cost of your expiring claims-made medical malpractice policy. The good news is that you can often save 20% on tail coverage – and get expert assistance in choosing the best standalone tail policy for your surgical specialty and practice location – by partnering with an independent malpractice insurance broker. Experienced MEDPLI tail insurance insurance brokers are ready to help you save money on your tail policy.

What is tail insurance?

Your employer-provided malpractice policy ends on your last day of work. Tail insurance is a standalone policy that protects you from liability for any future malpractice claims made on incidents that occurred during the time of your previous employment. Coverage is retroactive for any claims made on incidents occurring from the first date of work with your former employer.

Tail insurance is only necessary if your previous malpractice insurance policy from your former employer was a form of claims-made, also known as claims-paid, malpractice insurance.

If you don’t have tail insurance, you would be exposed to a lawsuit if a surgical patient you treated during your former employment files a claim against you before your new employer’s malpractice insurance coverage goes into effect. A tail policy also covers you if a former patient makes a claim several months or years after the incident occurred.

Also, studies have shown that historically, surgeons are more vulnerable to medical malpractice claims than physicians in non-surgical fields. For example, general surgeons and those in the practice of orthopedics, OB/GYN, plastic surgery, and urology are among the top 10 medical specialists most likely to be sued.

If you are a surgeon without tail insurance, you would be personally liable for all legal fees and indemnity payouts at trial for a claim made by a former patient. A tail policy will cover those expenses, and the policy carrier will provide your legal defense.

Tail insurance covers surgeons for liability for malpractice claims for incidents that occurred during previous employment but may have not affected the patient adversely enough to trigger a claim until months or years later.

The following are examples of previously occurring incidents that may result in future malpractice claims covered by a tail policy:

SURGPLI can often save you 20% on average by giving you the most affordable options for standalone tail policies from individual carriers. Those savings are more important than ever – malpractice insurance premiums are increasing each year due to trends in higher payouts to plaintiffs and legal fees. Surgeons should expect the cost of employer-provided tail premiums to increase as well.

Your SURGPLI insurance broker can help you choose the best and most affordable tail insurance coverage by:

Choosing between occurrence and claims-made malpractice insurance is crucial for surgeons. Understanding the nuances of each is essential to make an informed decision. Here’s a quick and concise breakdown that explains the differences between occurrence vs claims-made medical malpractice insurance policies.

Occurrence Policy: Covers incidents during the policy year, regardless of when a claim is reported.

Claims-Made Policy: Covers incidents during the policy year and when the claim is filed. Tail insurance is necessary if you switch carriers or jobs.

Occurrence Policy: Covers claims even if you change practices or locations.

Claims-Made Policy: Requires tail coverage or prior acts inclusion in the new policy for prior work protection.

Occurrence Policy: Higher upfront cost, stable rates, no need for tail insurance.

Claims-Made Policy: Lower initial cost, rates rise yearly, and tail insurance is essential when changing jobs.

Occurrence Rates: Steady but higher; no need for retroactive tail coverage.

Claims-Made Rates: Flexible but subject to increase; tail insurance mitigates prior acts risk.

Coverage: No variation in covered procedures between policies.

Limits: Occurrence covers each year; claims-made covers the entire prior acts period.

Switching to Occurrence: Generally requires tail insurance.

Switching to Claims-Made: Easier without immediate need for tail, but rates increase over years.

Occurrence Policy: Stable cost, no tail needed, suitable for various practices.

Claims-Made Policy: Affordable start, tail purchase required, fluctuating rates.

Making an informed choice regarding malpractice insurance is vital for surgeons. A knowledgeable insurance broker can provide tailored options from top-rated carriers to suit your specific situation. For expert guidance and quotes, reach out to SURGPLI, dedicated to helping surgeons secure the right policy for your needs from AM Best “A” rated carriers. Get a fast quote or call 1-800-969-1339.

Are you planning to change employers soon, or leave a medical group to open your own private surgical practice? Exploring your options for Extended Reporting Period (ERP) coverage, also known as medical malpractice “tail” insurance, needs to be a priority long before you even turn in your resignation.

Your employer will likely offer you a tail coverage option, but at a premium that typically runs 200%-250% of the cost of your expiring claims-made medical malpractice policy. The good news is that you can often save 20% on tail coverage – and get expert assistance in choosing the best standalone tail policy for your surgical specialty and practice location – by partnering with an independent malpractice insurance broker. Experienced SURGPLI tail insurance insurance brokers are ready to help.

Your employer-provided malpractice policy ends on your last day of work. Tail insurance provided by “A” rated carriers through SURGPLI is a standalone policy that protects you from liability for any future malpractice claims made on incidents that occurred during the time of your previous employment. Coverage is retroactive for any claims made on incidents occurring from the first date of work with your former employer. Tail insurance is necessary only if your previous policy was a form of claims-made, or claims-paid, malpractice insurance.

If you don’t have tail insurance, you would be exposed to a lawsuit if a surgical patient you treated during your former employment files a claim against you before your new employer’s malpractice insurance coverage goes into effect. A tail policy also covers you if a former patient makes a claim several months or years after the incident occurred.

Also, studies have shown that surgeons historically are more vulnerable to medical malpractice claims than physicians in non-surgical fields. For example, general surgeons and those in the practice of orthopedics, OB/GYN, plastic surgery, and urology are among the top 10 medical specialists most likely to be sued. If you are a surgeon without tail insurance, you would be personally liable for all legal fees and indemnity payouts at trial for a claim made by a former patient. A tail policy will cover those expenses, and the policy carrier will provide your legal defense.

Tail insurance covers surgeons for liability for malpractice claims for incidents which occurred during previous employment, but may have not affected the patient adversely to trigger a claim until months or years later. The following are examples of previously occurring incidents that may result in future malpractice claims covered by a tail policy:

Also, in some cases, the patient injury was apparent and acknowledged at the time of the surgical procedure, but the patient chose not to sue for malpractice. However, the surgeon is still be at risk for a lawsuit if the patient changes their mind within the state’s statutes of limitations for malpractice claims. These statutes vary from state to state, but are typically at least two years or longer.

Your SURGPLI tail insurance insurance broker will work with you to find the best tail coverage to fit the risk factors of your individual specialty and state statutes of limitations where you previously worked.

MEDPLI can often save you 20% on average by giving you the most affordable options for standalone tail policies from individual carriers. Those savings are more important than ever since malpractice insurance premiums are increasing in 2023 due to trends in higher payouts to plaintiffs and legal fees. So you can expect employer-provided tail premiums to increase as well.

Your MEDPLI insurance broker can help you choose the best and most affordable tail insurance coverage by:

Ready to change jobs? Get a free tail insurance evaluation from SURGPLI now.

Don’t wait. Talk to a SURGPLI insurance broker about your standalone tail insurance needs today. Learn how you can save money on tail policy rates – and how to get the best protection against malpractice claims from your previous employment.

Call us at 1-800-969-1339, email info@medpli.com, or fill out a contact request form.