Malpractice Insurance Termination from 1099 to W2

[gasman11]

I recently changed jobs from a 1099 group which I purchased my own Malpractice with Cooperative of American Physicians to a W2 group which is now providing malpractice. I notified CAP that I would like to terminate membership and they requested full payment of the Initial Trust Deposit which in total is 10,920$. In addition, for Tail coverage it would be an additional 18,450$.

This seems quite expensive, would you guys pay? The account manager said the other option is not paying and having no tail coverage.

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[dabears505]

Get tail coverage. Sometimes to get credentialed at some places you have to show proof of tail coverage.

 

[IMGASMD]

I recently changed jobs from a 1099 group which I purchased my own Malpractice with Cooperative of American Physicians to a W2 group which is now providing malpractice. I notified CAP that I would like to terminate membership and they requested full payment of the Initial Trust Deposit which in total is 10,920$. In addition, for Tail coverage it would be an additional 18,450$.

This seems quite expensive, would you guys pay? The account manager said the other option is not paying and having no tail coverage.

Is 28K worth it to you for your peace of mind?

Did you do any ob while on 1099?

And like @dabears505 said. Some place may require you to show continuous coverage.....

 

[IlDestriero]

The idea of going without tail coverage is crazy. You’re risking everything you have to save $18,000. You probably have $18,000 in options on your car.

 

[nimbus]

That’s pretty cheap for tail and you can write it off. I paid slightly more than that 18 years ago when I changed jobs.

 

[nimbus]

The idea of going without tail coverage is crazy. You’re risking everything you have to save $18,000. You probably have $18,000 in options on your car.

Triple that if it’s a Porsche...”contrast stitching on underside of seat”.

 

[Ronin1]

I recently changed jobs from a 1099 group which I purchased my own Malpractice with Cooperative of American Physicians to a W2 group which is now providing malpractice. I notified CAP that I would like to terminate membership and they requested full payment of the Initial Trust Deposit which in total is 10,920$. In addition, for Tail coverage it would be an additional 18,450$.

This seems quite expensive, would you guys pay? The account manager said the other option is not paying and having no tail coverage.

I’ve paid tail twice. 15 k after 9 months in practice. And 70k after 10years. Peace of mind is expensive. Decision should be based on your asset protection structure at least in part as well as your comfort level of being bare

 

[chocomorsel]

I recently changed jobs from a 1099 group which I purchased my own Malpractice with Cooperative of American Physicians to a W2 group which is now providing malpractice. I notified CAP that I would like to terminate membership and they requested full payment of the Initial Trust Deposit which in total is 10,920$. In addition, for Tail coverage it would be an additional 18,450$.

This seems quite expensive, would you guys pay? The account manager said the other option is not paying and having no tail coverage.

What is a trust deposit? Never heard of it. Only ever heard of tail which I have paid before to the tune of about 12-13K after an eighteen month job. Would have been much cheaper to get occurrence based.
Yeah, that is the problem with not having occurrence based policies. When you change jobs it becomes expensive. Such is life. Make sure you get occurrence based now.

 

[aneftp]

U peeps so cheapstakes. Pay up. It sucks. No one wants to waste money but get the tail coverage. When I was self employed. I paid my own occurrence malpractice yearly at a cost of 15-25k a year. Claims made starts out cheap. Say 5k the first year to around 15-18k at 5 year maturity. But the tail for claims made is usually 2x the last year premium

so occurrence you essentially pay things up front thus more expensive. Claims you will get end paying the tail on the tail end of things.

A coupLe of my friends risked it without paying the 35k tail. Cause their policy was mature but they were sure they didn’t have any outstanding malpractice cases. They did primary eyeballs and gi outpatient. So u will know if u issues with those cases. But it’s risky. esp if you covering high risk cases inpatient including ob.
if your tail is less than 15k. Pay it.

 

[NotFrankUnderwood]

Sorry, I'm bringing this back from the dead, but I'm in exactly the same position, and didn't want to start a new thread. I am one year out of practice, I have the same insurer and am being charged 19k for one year worth of tail coverage (no claims). My understanding was that tail was supposed to be 2-3x last years premium (whihc for me was ~1500 dollars - so expected tail to be 4500). Doesn't 19k seem absurdly expensive?

@gasman11 - what did you end up doing?

 

[Guillemot]

there is such a thing as nose coverage also (performs same function). So ask the new insurer if they provide that and at what rate. Maybe it will be cheaper. II dont know much else about this.

 

[nimbus]

Sorry, I'm bringing this back from the dead, but I'm in exactly the same position, and didn't want to start a new thread. I am one year out of practice, I have the same insurer and am being charged 19k for one year worth of tail coverage (no claims). My understanding was that tail was supposed to be 2-3x last years premium (whihc for me was ~1500 dollars - so expected tail to be 4500). Doesn't 19k seem absurdly expensive?

@gasman11 - what did you end up doing?

The $1500 was probably a discount for being new to practice. Tail is usually 3-4x market premium. At the end of 2001 I paid $37000 after 3.5 years in PP. Also no claims. But it’s tax deductible.

 

[pastafan]

Nose coverage is cheaper than tail coverage. It's the way to go.