Erik Leander is the chieftechnology officer andchief information officer of 

Erik Leander

The medical malpractice insurance industry, like every industry, is operating in uncharted waters as it responds to the COVID-19 Pandemic. Here are some of the most 

 we’re receiving from our physician clients all over the country during the COVID-19 Pandemic:

(Because each state is setting their own guidelines, please make sure to contact your agent with any specific policy questions.)

This is BY FAR our most common question. Most major liability insurance companies are changing their internal underwriting guidelines to allow practices to be more telemedicine-based until the COVID-19 pandemic ends. This is generally for COVID-19-related reasons, but what this entails has been loosely defined: 

Do you need to protect your patients from the virus, is one of your staff sick? 

Do your patients fall into a higher-risk pool and thus telemedicine is a safer medium? 

Physicians must document the relationship to the COVID-19 Pandemic as the telemedicine portion of their practice expands.

The utilization of telemedicine normally requires physicians to be licensed in the state where the patient is physically located. However, some states have waived the licensure requirement due to the pandemic. Physicians need to check with each state to verify that they comply with all state licensing regulations. 

Here is a current list of state licensing waivers and adjustments

. If you are adding a new state to your practice for telemedicine, you should contact your agent or broker.

Can I reduce my malpractice policy from full-time to part-time status?

Adding this endorsement to your current coverage will reduce your overall premium costs. Most physicians choose this path because their practice has been reduced significantly due to the pandemic. Many are experiencing a significant drop in patient visits; certain procedures could be deemed elective and patients may choose to reschedule their appointments. 

There have been a wide range of responses from malpractice insurance companies pertaining to suspension during the COVID-19 Pandemic: from no cost during the suspension to having the premium reduced by a certain percentage. Adding a suspension endorsement to your current coverage states that you are not seeing any patients during this time, and no coverage is provided during the suspension period. There are also specific rules covering the minimum and maximum length of time for a suspension endorsement to be approved. These vary greatly among all malpractice insurance companies and you should contact your agent if you have any specific questions or concerns.

This is for doctors who are working outside their specialty to assist with the COVID-19 crisis. Some insurance companies are covering this if it’s related to the pandemic, while others are not. Please contact your agent if you plan to work outside your specialty to ensure you have malpractice coverage in place.  

I’m a retired physician who wants to help where I can. What do I need to do to have malpractice coverage in place?

If you are a retired physician with a Tail Endorsement, some companies have issued statements that Tails will not be jeopardized for physicians who temporarily provide patient care specifically related to the COVID-19 Pandemic. If you will be working during the pandemic, it’s recommended you contact your agent or broker to ensure you’re fully covered.

7 Financial Reports Your Practice Needs to Run

Will my malpractice insurance company delay when my payment is due? 

Most malpractice insurance companies are extending due dates and suspending policy cancellations due to non-payment. Your premium will be due eventually, but many companies are providing additional time to make payments in this difficult time. Please contact your agent or broker if you plan on missing any payments or need additional time to make yours. 

Malpractice insurance companies are working to accommodate physicians during the COVID-19 crisis, but you still need to ensure that you have the proper coverage in place before you make changes to your practice. This is extremely important because the responses from the dozens of companies we work with have been slightly different. We highly recommend you contact your agent to ensure you are practicing within the guidelines of your policy and that you have the proper coverage in place.

 is the chief technology officer and chief information officer of 

, a medical malpractice insurance agency.

Articles

Answers to the most common questions being asked by physicians.

Malpractice insurance coverage during the COVID-19 pandemic

Whenever physicians leave a job, whether the reason is a new opportunity or retirement, they typically have to buy tail malpractice coverage. Tail insurance provides protection for any claims filed after a claims-made policy has been terminated. Claims-made policies are the most common type of medical malpractice insurance, but they only cover doctors while the policy is in force. This is why all doctors need to buy tail malpractice insurance after ending a claims-made policy.

Physicians seeking to purchase tail insurance have a wide variety of options to weigh carefully. The best option will depend on a number of factors, including each practice’s unique makeup and the exact procedures the physician was performing.

Tail malpractice coverage can be expensive depending on the location of the practice, so knowing all the options will ensure physicians receive competitive pricing with the proper coverage in place.

Here are three unconventional tail policy options:

Doctors can buy tail coverage with lower limits than the limits they had on their claims-made policy. The most common limits on a medical malpractice insurance policy is $1 million per claim/$3 million in aggregate.

They could buy a tail policy, for example, with limits of $200,000/$600,000. The lower limits would decrease the overall cost of that policy. We don’t recommend this option to most physicians because higher limits offer additional financial protection, and they never want to find themselves short on coverage.

Doctors can buy a one-year, two-year, or three-year policy. As time passes, the risk of having a claim filed against them decreases. Though this provides another way to save money when buying tail malpractice coverage, they should carefully consider the pros and cons of choosing this type of policy.

Before heading down the short-term policy route, they should think about the makeup of their practice, specialty, and the types of procedures performed. For example, obstetricians typically have a longer window of risk because it can take longer for a claim to be filed when a child is involved. It is always recommended that physicians sit down with their malpractice insurance agent to discuss all of their options.

3. Tail policies with aggregate limits that renew every year 

As mentioned above, the most common aggregate limits on a medical malpractice insurance policy is $1 million/$3 million. Since some tail coverage policies are lifetime, the $1 million/$3 million limits may not be enough in the long term.

To help ensure physicians have the correct amount of coverage in place, some insurance companies are now offering tail policies in which the aggregate renews each and every year. Though this can increase the price of the tail policy, it will give peace of mind in securing renewing coverage. As always, the final choice will depend on the physician’s unique situation, so it’s best to consult with a medical malpractice agent while navigating options.

Renewable aggregate tail insurance policies are fairly new, and not every insurance company offers them. Here are two real tail malpractice insurance quotes for an internal medicine physician client of ours practicing in Lake County, Ill.

Whichever tail malpractice coverage option physicians choose, they should always make certain the coverage put in place will exceed the potential exposures of their medical practice and the procedures performed. There will always be new options available as insurance companies try to innovate within this changing healthcare landscape, so make sure to know the options.

Erik Leander is the chief technology officer and chief information officer of 

Before securing a policy to cover work from a previous employer, physicians should examine all tail insurance options.