malpractice, tail, and working in multiple states

[1edyfirel]

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Hi, all--Question about malpractice, tail coverage, and working in multiple states (that you are licensed in).

Here's my situation. Looking at a contract, have not signed. Says they don't provide tail. I protest, director comes up with a % of tail they will cover, will cover 100% if I stay for 2 years. Ok, don't love it, but my question is not about whether I should love this.

Job entails work in state A, which is my primary state and where I am licensed. Job also entails some tele work in states B, C, and D (I would get licensed in those states).

I ask employer to speak to their malpractice rep to get quote on tail. I speak to him, and he tells me he will send me quotes for coverage ONLY in state A. He tells me they do not provide coverage if pt lives in state B, C, or D.

I have since emailed the director of the practice, asked him about the above and if there's some other group he's using for coverage for states B, C, and D as I need to get their tail coverage quotes.

My questions: Does this seem shady? Could the rep have been mistaken? And how does malpractice work when you're working in and licensed in multiple states? Do you have to get a policy for each state? Could I be responsible for tail for states A, B, C, and D if I leave before the 2-year mark?

Thank you! I'm coming from academics where malpractice was occurrence-based, so this world is new and confusing to me.

 

[Sushirolls]

Big Box shops use tail insurance coverage as means to further scare/trap/bait people into staying. Thankfully our liability insurance isn't an OB / surgeon level to be prohibitive, but it is an expense.

If it is a hospital, and is self insured, they can and are capable of simply saying they will cover the tail... or they are using it as part of their global tools to keep people locked in.

You may be better off calling up the big carriers and finding out what it costs to self insure in all those states and what the Occurrence based cost would be. Chances are the costs associated with covering your own will be a better deal until 4-5 years later, compared to doing their insurance and paying for the tail at time of departure. You can effectively get numbers and plot out graphically an inflection point.

You can also negotiate and say their lack of tail coverage for all practice sites is not acceptable, and you found your own liability coverage of $X dollars and want to that be an increase in comp to cover that expense.

Basically, if they are messing around with you on liability coverage and in context of multiple states, this is RED FLAG shot across the bow, walk away from these folks. You are going to soon uncover more RED FLAGS.

 

[michaelrack]

Hi, all--Question about malpractice, tail coverage, and working in multiple states (that you are licensed in).

And how does malpractice work when you're working in and licensed in multiple states?

some states have malpractice companies that a majority or large minority of the docs belong to, and only cover that state. The Medical Assurance Company of Mississippi provides coverage for my practice in MS. Other policies will cover any state. I also have a policy through Admiral that will cover any state (assuming that I provide advanced notice and pay $ for any changes)- currently this policy covers me for my private practice/independent contractor work in Arkansas and Tennessee. So other than the state-specific malpractice companies, you should generally need only 1 policy (I keep my Mississippi policy because it has some unique "retirement " benefits associated with it, and "equity account"- Equity accounts are available for distribution only upon termination of membership in the Company due to death, disability or retirement, as defined in the Company's bylaws. Termination of your membership for any other reason results in forfeiture of your account."