Tail coverage is purchased when your claims-made policy is cancelled or non-renewed. Tail coverage continues insurance protection under your claims-made policy for claims arising in the future, but which occurred when your policy was in force. Tail coverage is expensive because it continues coverage into the future. (Tail coverage is also known as a reporting endorsement.)
TMIC offers free tail coverage to health care professionals who:
- are 50 years of age or older; and
- have been continuously insured with TMIC for 5 years or more; and
- cancel their policy due to complete retirement from the practice of medicine.
TMIC waives the tail premium if the physician dies or retires due to medical disability.
PRIOR ACTS COVERAGE
Another type of supplemental coverage is prior acts coverage, which is purchased from your new insurance carrier when you change carriers. Prior acts covers incidents that occurred under a previous claims-made policy and which have not yet been reported. If new claims arise that occurred during the prior acts period, they are reported to your new carrier to be covered under the prior acts policy. (Prior acts is also known as “nose coverage.”)