What is necessary to ensure coverage after stopping claims-based malpractice insurance premiums?

To ensure coverage after stopping claims-based malpractice insurance premiums, purchasing tail coverage is essential. Tail coverage is an extension of coverage that specifically applies to claims made after a policyholder has stopped practicing or switched insurance types, allowing for protection against claims that may arise from incidents that occurred during the period of active insurance.

Claims-made policies only provide coverage for incidents that are reported while the policy is active. Therefore, once the policy is terminated, claims related to prior incidents may not be covered unless tail coverage is obtained. This additional coverage safeguards the healthcare provider from potential legal claims that could arise after the termination of the original policy, even if the events in question occurred while they were still insured.

Transitioning to occurrence-based insurance, on the other hand, would provide coverage for any incidents that occur during the time period of the insurance, regardless of when the claim is filed, but it does not apply once someone is no longer actively covered by a claims-based policy. Documentation of past claims and signing an affidavit may relate to the legal aspects of malpractice, but they do not directly address the need for extended coverage once a claims-made policy is no longer in effect.