What is the primary function of tail coverage in malpractice insurance?

The primary function of tail coverage in malpractice insurance is to extend coverage after a claims-made policy is discontinued. Claims-made policies provide coverage only during the time the policy is active, meaning that if a patient files a claim after the policy has been canceled or not renewed, there would be no coverage for that claim. Tail coverage allows practitioners to remain protected from claims that may arise after their policy has ended for incidents that occurred while the policy was active. This is particularly important in the medical field, where claims can be filed years after the event in question.

Tail coverage addresses the potential gap in liability protection and ensures that practitioners are not left vulnerable to claims made after they have transitioned from active practice or changed their insurance arrangement. It is a critical aspect of malpractice insurance for those who may retire, change jobs, or stop practicing medicine but still face the risk of legal claims.