Specialized Malpractice Insurance for Professionals
Most experts agree that the right coverage for you actually depends on your circumstances, both now and into the future. Most professionals, including doctors, lawyers, and architects, need professional liability coverage because of the type of work they perform, which often includes giving their professional opinions. Because claims might be made during a period of time after a policy has expired or been discontinued, professional liability tail coverage will also come in handy.
A tail policy is also known as extended reporting period coverage. The tail gets its name because it becomes active after your policy has terminated and youve purchased the tail endorsement once you terminate a claims-made policy. The “tail” endorsement allows you to report claims for covered incidents that occurred while you were insured.
Claims made versus occurrence
The claims-made policy offers you greater flexibility because your last year’s policy is the one covering your past or prior acts. This allows you to increase your limits or buy new coverage that wasnt available when you originally started your policy. Since the policy in force at the time of the claim will respond to the claim youll get the benefit of enhanced coverage. Claims-made coverage is portable, so you can take the coverage from one insurance company to the next.
On the other hand, the advantage of having an occurrence policy is in its permanence. The period of time youre insured under an occurrence policy is totally protected by the policy you had during that year, and you may not need to renew or buy the tail when you leave the company.
The term nose is another way of referring to your retroactive date or prior acts coverage. Since prior acts coverage provides cover for actions that occurred prior to your current policy, it is called a nose (as opposed to a “tail”). The bottom line is that you may need to be covered after the expiration date of your policy and can purchase a policy designed to provide you with this valuable protection. Speak to an agent about professional liability tail coverage so you can rest assured that you have the proper policy for your professional needs.