Average Cost Of Tail Coverage For Physician

Average Cost Of Tail Coverage For Physician. A good rule of thumb is tail insurance costs around 2 times your annual medical malpractice insurance premium. There’s no easy way to get out of paying the tail coverage once it is enshrined in the contract.

from venturebeat.com

A good rule of thumb is that tail insurance coverage generally costs about twice your annual premium. It can easily reach $100,000 to $200,000 or more. A good rule of thumb is tail insurance costs around 2 times your annual medical malpractice insurance premium.

Source: venturebeat.com

And so, if the tail insurance costs around twice that, their tail insurance costs would be somewhere between 12,000 to 16,000. It is not an annual cost.

Source: venturebeat.com

The cost of coverage depends on the period of the coverage; Your tail cost would be around $12,000.

That Price Can Be Steep.

Typical costs are 1 year for 150% of the expiring annual premium, 3 years for 200% of expiring annual premium and 5 years for 250% of the expiring annual premium. If they provide only claims made, you may be in a pickle. How much does tail coverage cost?

Let’s Kind Of Break Down The Details Of That.

The cost of insurance coverage is based upon the claims history of the provider. How to lower your tail coverage cost. On the high end, surgeons typically pay between $30,000 to $50,000 a year for malpractice insurance, but that could go higher for riskier forms of surgery.

So, 75% Must Pay For Their Tail Insurance.

I’d say maybe 75% versus 25%. Tail coverage protects physicians from claims. Unfortunately, tail coverage can be quite expensive, which is why some physicians choose to forgo it.

Of Course, Lawsuits Are Even More Costly, So Going Without Tail Coverage Is A Big Financial Risk.

It said these claims cost an average of more than $30,000 to defend. In addition to the high cost, tail coverage is fully earned and is therefore almost impossible to finance. Physicians may be changing employers or practice settings in today’s volatile health care market more than ever before.

Thus, If Your Annual Premium Costs $6000;

It is not an annual cost. A good rule of thumb is tail insurance costs around 2 times your annual medical malpractice insurance premium. However, 200% of your current premium is a good ball park estimate.