Malpractice Tail Coverage - Difficult Decision?

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Topic Author
bruingent
Posts: 66
Joined: Fri Aug 02, 2013 8:58 am

Malpractice Tail Coverage - Difficult Decision?

Post by bruingent » Mon Oct 07, 2019 2:23 pm

I am moving to a new job.  So need Malpractice Tail Coverage.  So I narrow down to two Tail Coverage quotes, they both have similar bells and whistles. 

ISMIE - $18,566.86

MAIC - $13,120  http://www.maicinsurance.com/

MAIC was my previous employer malpractice insurance, so they most likely have some kind of large discount for my previous employer.   Looking at the quotes above, I was definitely choosing ISMIE over MAIC because I believe ISMIE is a much better company.  As I was about to sign the dotted line.  My previous employer asked me to reconsider MAIC as they think it is a good company and they will also pay for half of the MAIC insurance tail coverage.  However, they said if I choose ISMIE then I am on my own.  So basically the math came down to

ISMIE - $18,566.86

MAIC - $6600

If you guys were in my situation, which company would you go for still?  I have an idea, but I like to hear from other people.

Thanks

Xrayman69
Posts: 233
Joined: Fri Jun 01, 2018 8:52 pm

Re: Malpractice Tail Coverage - Difficult Decision?

Post by Xrayman69 » Mon Oct 07, 2019 3:17 pm

Does you new employer (if employment model) have a malpractice company that will permit you to purchase tail coverage and receive a discount ? And would your new employer also be willing to pay for the tail as part of hire?

Topic Author
bruingent
Posts: 66
Joined: Fri Aug 02, 2013 8:58 am

Re: Malpractice Tail Coverage - Difficult Decision?

Post by bruingent » Mon Oct 07, 2019 3:19 pm

Yes, the new employer offers to pay $10k

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gasman
Posts: 738
Joined: Mon Jul 30, 2007 6:13 pm

Re: Malpractice Tail Coverage - Difficult Decision?

Post by gasman » Mon Oct 07, 2019 3:24 pm

why do you consider ISMIE to be a "better company"

consent to settle?
willingness to fight?
panel of attorneys?
financial strength?

Topic Author
bruingent
Posts: 66
Joined: Fri Aug 02, 2013 8:58 am

Re: Malpractice Tail Coverage - Difficult Decision?

Post by bruingent » Mon Oct 07, 2019 3:33 pm

mainly ISMIE due to well known, better recommendations from others. MAIC is not well known. The chance of me getting any claim is low, but I don't want to take a chance.

smackboy1
Posts: 1126
Joined: Wed Mar 14, 2007 9:41 pm

Re: Malpractice Tail Coverage - Difficult Decision?

Post by smackboy1 » Tue Oct 08, 2019 8:57 am

Insurance is a safety net so THE most important criteria is that it is there when you need it. IMHO go with the company that:

Better financial rating (rated A or better)

Higher volume of med mal insurance written

Been in the med mal business for longer
Disclaimer: nothing written here should be taken as legal advice, but I did stay at a Holiday Inn Express last night.

Lafder
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Joined: Sat Aug 03, 2013 7:56 pm
Location: East of the Rio Grande

Re: Malpractice Tail Coverage - Difficult Decision?

Post by Lafder » Tue Oct 08, 2019 9:04 am

I thought tail coverage was from the insurer who covered you before the tail is needed. I did not know you could shop around for options.............

I would go with the company that covered me all along. What if there is a claim that crosses over the before tail and after tail period ?

Hopefully no claims so a non issue.

I would go with MAIC

lafder

J295
Posts: 2127
Joined: Sun Jan 01, 2012 11:40 pm

Re: Malpractice Tail Coverage - Difficult Decision?

Post by J295 » Tue Oct 08, 2019 9:17 am

Apparently medical professional negligence tail is different than legal professional negligence tail…

FWIW as a retired lawyer I have tail coverage at no additional cost because my former firm has continuous coverage through its same insurer and under that policy all current and former lawyers are covered on a claims made basis for professional negligence that occurred while they were with the firm.

zlandar
Posts: 146
Joined: Wed Apr 10, 2019 8:51 am

Re: Malpractice Tail Coverage - Difficult Decision?

Post by zlandar » Tue Oct 08, 2019 9:55 am

Assuming coverage limits are the same the cheaper quote. The more expensive quote is 3x as much. Your risk of a claim is low.

obgraham
Posts: 1221
Joined: Mon Jan 28, 2013 7:30 pm

Re: Malpractice Tail Coverage - Difficult Decision?

Post by obgraham » Tue Oct 08, 2019 6:20 pm

J295 wrote:
Tue Oct 08, 2019 9:17 am
Apparently medical professional negligence tail is different than legal professional negligence tail…

FWIW as a retired lawyer I have tail coverage at no additional cost because my former firm has continuous coverage through its same insurer and under that policy all current and former lawyers are covered on a claims made basis for professional negligence that occurred while they were with the firm.
Back in the "old days" medical liability insurance was an "occurrence" policy. Coverage forever for an event occurring in the year you paid for. No tail needed. But when rates shot up, "claims made" became widespread, in which you are only covered in the year you pay for. Hence the need for a tail when you leave that policy.

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