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I know it varies from state-to-state, but does anyone know what a standard tail policy costs?
Tail Coverage
- Thread starter DrRobert
- Start date
D
deleted126335
It varies greatly, but a rule of thumb is 150-250% of the last annual premium. You might be able to save a little if you wish to reduce coverage limits for the tail, the insurance company may not allow this.
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I was quoted 240% of my final year premium.
Yup. Always estimate 2.5 x the last premiums.
So if you premiums are $15k. Count on 35k as your tail.
Always overestimate. That way you aren't encountered with sticker shock.
I prefer occurrence anyways. In reality occurrence and tail are almost essentially the same. Except occurrence u pay for everything up front.
If on partnership track. Always insist on tail being paid if you don't become partner. Huge red flags for potential employee on partnership track if group tries to tell u they pay tail after partnership. Duh. If you are a partner than u would have made more money to pay for your own tail. That's one of the dumbest reasons groups always potential employees. Don't be fooled.
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My group has occurrence coverage. We are happier that way.
Occurrence is always the best to have but also the most expensive upfront.
Like I said claims made is cheaper up front but more expensive if you leave and responsible for the tail.
All new grads or new employees must always ask who pays for the tail. This should be lesson 101 with any basic negotiation. As long as group is upfront than that's fine.
Also many hospital based employed W2 anesthesia usually have what's called "self insured" hospital policys.
Big corporations like Sherdian and American anesthesiology also are "self insured" Which essentially means you do not have any tail to worry about when you leave.
