What is Tail Coverage? Do I Need it to Switch My Insurance?
I often have conversations with doctors regarding tail coverage and always receive the same two questions: what is it, and do I need it if I want to switch my insurance to PRMS?
What is it? Tail coverage only applies if you have a claims-made policy. The insurance term for “tail” is an extended reporting period. Having this coverage allows you to report claims after the policy has been cancelled for incidents that may have occurred during the coverage period. Typically these policies have a retroactive date or a first date of coverage associated with them. The reported incident must have occurred between the retroactive date and the cancellation date of the claims-made policy.
Do I need it? If you currently have a claims-made policy you do not always need tail coverage in order to make the switch to PRMS. Claims-made polices are often referred to as portable policies since you can easily transfer them to a new insurer. For example, the PRMS insurer would pick up the coverage back to the retroactive date or first date of coverage, accepting all of the risk and providing continuity of coverage for you.
If you are currently insured under a policy that may have been purchased by your employer, the need for tail coverage may vary greatly. In this case it is best to discuss your options with a PRMS representative; however, it is always important to find out up front how that employer will handle the tail issue. I welcome the opportunity to discuss how easy it is for you to switch your current claims-made policy to PRMS. Contact us today to learn how easy it is to switch your coverage to the program that puts psychiatrists first at 1-800-245-3333 or TheProgram@prms.com
By: Remy Palmer, RPLU
Senior Account Manager
Remy Palmer has been with PRMS since 2003. In her role as senior account manager, Ms. Palmer provides insurance advice, coverage solutions, and competitive policy terms to the large group accounts. She represents PRMS to potential clients by assessing their practice and offering customized proposals to meet their insurance needs. Ms. Palmer maintains strong relationships with brokers and group practice managers. She travels across the country speaking with clients and potential clients at psychiatric state, regional and national conferences.
Prior to joining PRMS, she was an independent distributor for BP Marketing Solutions responsible for selling and marketing corporate promotional packages. Ms. Palmer has a Bachelor of Science degree in Finance and Management from St. John’s University. She is a Registered Professional Liability Underwriter (RPLU) and a licensed property and casualty agent.