Chapter 3: How to Fill the Gaps Left by Standard Insurance Policies
No insurance policy covers every risk. For instance, when we looked at Property Insurance, we noted the breadth of coverage a standard plan includes: compensation for loss or damage caused by windstorms, fires, thefts, and power outages. However, most Property policies exclude coverage for flood, hurricane, and earthquake damage.
But that doesn't mean small medical practices in California are thrown to the wolves when it comes to earthquake damage protection. They can add an event-specific endorsement (also called a "rider") to their primary Property policy.
Endorsements or riders help you tailor your plan to your specific insurance needs. That way, you don't pay extra for bells and whistles you don't need. You can simply pick and choose the fillers that help you manage the risks most threatening to your business.
Read on to learn about the types of riders available to self-employed healthcare practitioners.
Extended Reporting Period (ERP) Endorsement / Tail Coverage
Extended Reporting Period coverage (aka "tail coverage") can help you avoid gaps in your Malpractice policy. If you must cancel or have not renewed your policy, this endorsement can make sure that you still receive the benefits of your Malpractice Insurance for claims filed during the interim, so long as those claims occurred while your policy was in force.
Prior Acts Endorsement / Nose Coverage
Prior act coverage (sometimes called "nose coverage") is another supplement for your Malpractice Insurance. Most medical professionals purchase this endorsement from their new insurance carriers when they switch providers. Prior acts coverage covers incidents that occurred under a previous claims-made policy, but have yet to be reported. If such a claim arises during this transition time, you report it to your new carrier and your prior acts policy can cover the lawsuit.
Next: Why Starting and Stopping Malpractice Insurance Never Pays Off