Malpractice insurance (telepsychiatry)

[psychcapjob]

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I'm in talks with a few of the national telepsychiatry companies for a 1099 part-time gig.

One company I was planning on signing with is offering a single, corporate claims-made policy that they state is renewed continuously. The staff member I spoke to mentioned that because their policy is renewed it makes tail coverage unnecessary when I eventually stop working for them.

Is this accurate? My understanding was that claims-made policy requires tail coverage.

 

[anonperson]

I'm in talks with a few of the national telepsychiatry companies for a 1099 part-time gig.

One company I was planning on signing with is offering a single, corporate claims-made policy that they state is renewed continuously. The staff member I spoke to mentioned that because their policy is renewed it makes tail coverage unnecessary when I eventually stop working for them.

Is this accurate? My understanding was that claims-made policy requires tail coverage.

What happens when they stop renewing if they go out of business?

Then you'll need a tail since it's claims made

 

[comp1]

I guess this sort of works, but I haven't heard of it. Budget with the assumption you will be buying a tail policy at some point.

 

[TexasPhysician]

They lie.

 

[psychcapjob]

So in this case would it be best practice to just get my own separate malpractice with tail coverage outside of what the company provides?

 

[comp1]

As far as I understand it, tail coverage is purchased when you leave a position. I'm not sure how they would underwrite something in an undefined future.

 

[calvnandhobbs68]

So in this case would it be best practice to just get my own separate malpractice with tail coverage outside of what the company provides?

You typically buy tail coverage from the company you were previously covered under when you end the claims made policy.

I mean there's no reason to pay for malpractice on your own if they'll cover it, you'd just be responsible for tail afterwards.

It would also matter the way their insurance contract is written. If their policy coverage covers all current and previous employees, then yes that's theoretically possible but like was mentioned before, you're relying on them continuing to renew the policy with that specific company indefinitely and not go out of business or stop paying premiums or something.