What is tail coverage in relation to medical malpractice insurance?

Tail coverage is a provision in medical malpractice insurance that is specifically designed for claims-made policies. A claims-made policy provides coverage only for claims made during the policy period. If an incident occurs while the policy is in effect but the claim is filed after the policy has expired, the physician would normally not be covered unless they have tail coverage.

Tail coverage extends the coverage period for claims made after the policy has ended, protecting practitioners from claims that arise from incidents that occurred during the time that their claims-made policy was in force. This is particularly important in the medical field, where claims may take years to surface. Thus, tail coverage is crucial for medical professionals transitioning between jobs or retiring, ensuring they are protected against potential future claims related to their past practice.

The other options do not accurately describe tail coverage. Future claims and claims from before the start of the policy are not what tail coverage addresses. Similarly, acts of fraud after a policy expires involve different aspects of insurance coverage and liabilities, not tail coverage. This clear definition and understanding emphasize why the occurrence policy related to claims-made policy terms is correctly identified as tail coverage.