Save Money on Tail Coverage

Posted by | December 20, 2011 | No Comments

Physicians across the country are now able to secure affordable stand-alone tail coverage.  In an effort to contain the costs of tail coverage for physicians, Diederich has taken the steps necessary in order to be able to provide cost-effective stand-alone tail coverage for physicians.

More frequent than ever, physicians have begun closing  their private practices to seek stability as an employed medical provider with a large integrated health system. Many medical experts consider this “an evolutionary step in the healthcare industry,” while others believe that this is only a cyclical trend that is linked to the weakened economic environment within the United States. This trend has remained stable over the past year and many medical practitioners have chosen to relinquish their independence to seek shelter under the umbrella of a hospital or integrative medical program.

As one prepares to consolidate their practice, an important detail must be evaluated for those canceling a claims-made medical liability insurance policy. An extended reporting endorsement or “Tail Coverage” must be secured prior to cancelling a malpractice insurance policy to ensure that past patient exposure is still protected. One of the largest misconceptions with tail coverage is that “physicians are GUARANTEED free tail coverage if they are insured with a carrier for five (5) years or more.” This is a very inaccurate assumption that can either leave a physician with an unexpected last minute overhead expense or a gap in their professional medical liability insurance coverage.

The majority of state admitted medical malpractice insurance carriers only provide free tail coverage if a physician retires completely from the field of medicine after five (5) years of continuous coverage. Therefore, physicians moving to integrated health programs are left with the daunting task of purchasing their own extended reporting endorsement. As a rule of thumb, most tail policies will cost a physician 200% of the current annual premium. Therefore, a doctor is spending $20,000 annually on medical liability insurance coverage, can assume tail coverage to be about $40,000 upon the cancellation of their current policy. This is a large overhead expense and the agents at Diederich Healthcare understand the need for physicians to cut excessive overhead expenses during these trying times. Diederich Healthcare, one of the nation’s largest medical malpractice insurance agencies serving over 13,000 physician clients, can assist physicians by finding a more cost effective extended reporting endorsement or “Stand-Alone Tail Coverage”.

Paying 200% of a current policy’s premium to lock in tail coverage is not the only option and Diederich Healthcare is able to assist physicians by finding stand-alone tail policies for less than half the cost of a tail policy offered by the physician’s current insurance carrier. Extended reporting endorsements can be secured through nationally recognized insurance carriers rated “A (Excellent)” by A.M. Best Financial Stability Ratings and ensure physicians the highest level of coverage protection. Available coverage meets credentialing requirements and medical providers can be assured that the strength of the policy is not sacrificed for a competitive price.

About Jeremy Gower (view full bio page) - Google+

Jeremy Gower is the Director of Special Projects and Marketing for Diederich Healthcare, a division of Diederich Insurance Agency, LLC, and for the Diederich Group. He is closely involved with several special projects and with integrated marketing communications. His work also includes working closely with the II services provider. As such, Jeremy is an integral part of these areas for the organization. He prides himself on his integrity and his ability to get things done. Prior to joining the Diederich Insurance Agency, LLC in 2007, Jeremy worked in Southern Illinois and is a native of that area. He graduated in 2008 from Southern Illinois University with a degree in Psychology. Jeremy is married (Brianna) with two children (Bella and Cason) and resides in Marion, Illinois.

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