November 13, 2014

Question:

Jennifer,

I am leaving the practice I was at and wanted to know who is responsible for paying my malpractice insurance?

Please help.   

Thanks,
Dr. H

Answer:

This is one of those questions I would love to answer but the answer entirely depends on your agreement (preferably in writing) with the practice you are leaving.  And, the answer also depends on the type of malpractice insurance you had while at the practice.  If you are leaving the practice and had an "occurrence" based policy, then any claims that may arise for any services performed by you while at the practice would be covered under that policy no matter when asserted.  If, in the alternative, you were covered by a "claims made" policy, only those claims actually brought while the policy was in place (while you were at the practice) would be covered unless you continued that policy or "tail" coverage is purchased on that policy.  

Who is responsible for paying for "tail" with a "claims made" policy is not obvious.  If there is no written agreement between you and the prior practice stating they agree to pay for any tail, you may be in a predicament where you are personally responsible for picking up your own tail.  Then again, a tail may not be necessary if your new employer, or you elect to continue your prior policy without interruption.  

So, to answer your question, I need more information, and preferably a look at your prior employment agreement.  

And, the easiest way to avoid ambiguity in this situation is to work with a healthcare attorney in your contract creation, to ensure issues such as malpractice coverage post-termination are addressed on the way in, as opposed to the way out. 

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