Insurance Terms

Extended Reporting Period (Tail)

If for some reason your claims-made policy is cancelled, a tail endorsement will be made available. This extends the reporting period of the last policy in place. The tail could be free or cost as much as 300% of your expiring policy. The tail provides indefinite coverage for the period of time you were on a claims made policy.

Limits of Liability

Limits of liability can range from $100,000/$300,000 (per claim/aggregate) to $1,000,000/$3,000,000 or more. Legal fees are typically included in addition to the limits of liability.

Locum Tenens

You typically are allowed 30 to 45 days of coverage per year for a “temporary substitute” if you are out on vacation, disability, etc. Coverage may not be automatic with all carriers.

Part Time

Most carriers offer PT discounts for physicians working less than 10, 20, or 30 hours on average per week.

Prior Acts Coverage

As long as you remain insurable, prior acts coverage is available from most carriers. This eliminates the need to purchase an extended reporting period (tail) if you need to continue coverage but want to change insurance companies.

Professional Legal Defense – Additional Limits

Provides additional defense coverage for investigations by Medicare/Medicaid, peer review organization, state-licensing board, HIPAA violations, disciplinary and licensure proceedings. The limit is typically capped at $25,000.

Retroactive Date

The date you first started a claims-made policy. Once you establish a retroactive date, it will remain the same as long as you continue coverage.