Tail Coverage
What is a Tail Coverage?
Tail Coverage, also known as the Extended Reporting Endorsement, extends the time a claim may be reported after any of the following events:
- Retirement
- Termination
- Cancellation
- Relocation
- Disability
- Death
The Tail endorsement protects any physician, standalone midlevel provider, and their organization from losses due to claims reported for acts performed or withheld from the retroactive date through the ending date of their last individual policy with Red Clay.
Individual and Corporate Tail
Tail is only offered on individual polices; it will not be offered to midlevel providers covered under an endorsement, nor will it be offered to insureds leaving a slot policy. If the clinician terminates their policy and declines Tail, their organization will then be offered Corporate Tail. Under Corporate Tail, only the organization will be covered for actions performed or withheld by the terminating clinician from the retroactive date to the ending date on the clinician’s last policy.
Voiding Tail Coverage
Tail Coverage purchased due to either retirement or disability will be voided if the insured returns to practice anywhere, regardless of practicing full-time or part-time, within two years of the effective date of the endorsement.
Tail Limits
Policies issued by Red Clay RRG are subject to two separate limits:
- The Each Loss Limit refers to the maximum that Red Clay will pay toward a singular loss, regardless of the number of claims, during a policy period.
- The Aggregate Limit refers to the maximum that Red Clay will pay for the total of all separate and unrelated claims during a policy period. If the Aggregate Limit is exhausted paying claims, no further Tail Coverage will be provided.
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