Malpractice claims often surface long after treatment. If you’re on a claims-made policy and you retire, change employers or switch carriers, any claim filed after that date has no coverage unless you have a tail.
Tail is a one-time purchase and is often priced as a multiple of your last annual premium. Some carriers waive it at retirement, death or disability. Before you sign an employment contract, find out who pays for tail when you leave. It’s one of the most negotiated terms in physician contracts.
The alternative is prior acts (nose) coverage, where your new carrier accepts your old retroactive date.