Upon retirement, a physician no longer needs medical malpractice insurance so they cancel their policy. But what happens if a malpractice claim is filed against them a year after they have retired? Are they protected from the claim? The answer is yes—if they have tail coverage. But what is a tail policy?
Tail Coverage Explained
A tail policy is also called an extended reporting period endorsement. This coverage allows you to file claims against your policy even though coverage has expired. The claims must be for insurable events that occurred while your original policy was in effect.
Who Needs Coverage
Tail coverage isn’t just for physicians. Any insured with a claims-made policy should also have a tail policy included. There are several different types of claims-made policies.
Length of Coverage and Cost
This type of coverage is limited in duration, with policies written in 1-year increments. Typically coverage is needed for as long as the claim filing statute of limitations in the insured’s state. Duration affects cost, as does policy type. For professional liability insurance, the insured can expect to pay a fixed percentage of the final premium.
A tail policy should be another part of your risk management strategy to protect you and your business from liability.
While there are rules on the road that every driver has to abide by on U.S. highways, commercial drivers have regulations of their own to follow. With truckers, even truck driver driving time is regulated.
Why Truckers Need Regulation
Big rigs are one of the most dangerous vehicles on the road. Although driving while exhausted is dangerous for all drivers, commercial truckers have a higher responsibility to the vehicles around them. Regulations are meant to prevent truckers from becoming extremely tired or overworked while driving. Not only does this help prevent mistakes, but it also makes the road safer.
How Truckers Must Comply
Trucker drive times are split into work periods and duty periods. The work period is like the workweek, whereas the duty period is similar to a workday. Truckers can work up to 60 hours a week and up to seven days straight. However, in order to work seven days straight, a trucker must rest for at least 34 hours before the work period.
There must be at least a 10-hour break between every workday. Once the workday begins, truckers can only work for 14 hours and only drive for 11 of those hours. After every eight hours, the trucker must take a 30-minute break. All of the breaks count against the workday.
Trucker drive time regulations help keep everyone on the road safe.
Though the term “malpractice” is commonly associated with negligent acts in the healthcare industry, professional liability concerns extend to any business or professional. Under claims of errors and omissions, professional may be held responsible for third party claims of damages or loss arising from any mistake or poor judgment made during the execution of the job duties. For accountants, this means several claim scenarios.
Professional Liability Claims
The liabilities faced by a professional vary according to industry, but E&O for accountants deals with the harm (alleged or occurred) to a client as a result of financial advice, administrative error, or failing to deliver on a promise or contractual obligation. Common claims include the following:
- A data entry mistake that led to inaccurate financial record keeping
- Incomplete paperwork submitted to the IRS or other reporting agency
- Misinformation that led to overpayment to the IRS
- Lack of sufficient communication or attention to a client’s need or requests (claims of negligence)
- Third-party subpoenas or legal action involving an accountant’s client based on the financials arranged by the accountant
There is no limit as to what kind of claims could be open against an accountant. E&O insurance for accountants is one form of risk management against these scenarios, but accountants must do their due diligence in keeping accurate records, putting documentation and processing safeguards in place against errors, and communicating proactively and thoroughly with all clients.
State laws require employers to carry worker’s compensation coverage in most cases. For larger companies or those operating within certain industries, that can add up to a considerable expense. Group self insurance options have evolved and are an attractive choice for many of these companies. Keep these three things in mind if you consider self-insured workers comp for your business.
1. It Can Save Money Over Time
Self-insurance can be a great way to help keep costs under control in certain circumstances. Instead of paying a monthly premium, you are responsible for the costs arising from claims as they occur. For groups, you may also be responsible for claims belonging to other members.
2. It Gives Control for Claims to Your Company
By acting as your own insurer, you regain a greater amount of control. You decide how claims and adjustments are handled on an individual basis. That can speed the claims process along and improve the care employees receive after an injury. This remains true in a group setting.
3. Self Insurance Is Not Right for Everyone
It requires substantial financial resources. You will need to pay any claims that arise, which can be a financial strain if you face claims right away, a substantial single claim, or multiple simultaneous or overlapping claims.
Group programs mitigate many of the risks associated with self insured workers comp while harnessing the benefits. That has made them an increasingly attractive option for business insurance needs.