Get Informed BEFORE You Cancel

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Canceling Your Medical Malpractice Claims-Made Policy?

READ THIS! YOUR FUTURE SELF WILL THANK YOU!

So, you’re thinking about canceling your medical malpractice claims-made insurance policy. Maybe you’re closing your med spa, switching to a new insurer, or just trying to save money. Whatever the reason, STOP and read this first. Canceling a claims-made policy isn’t as simple as walking away. There’s a lot at stake, and you need to protect yourself from potential financial disaster. Let’s break it down in plain terms.

What is a Claims-Made Policy Anyway?

A claims-made policy is a type of insurance that covers you for claims reported while the policy is active. That means:

• If a patient files a claim during your policy’s coverage period for something that happened while you were insured, you’re covered.
• BUT… on a claims made policy the claim has to be reported while the policy is active. The incident date is not the controlling date, and your own policy terms govern how yours works. Yikes!

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Why Tail Coverage Matters

Extended Reporting Period (ERP), also known as, Tail coverage, steps in to save the day when you cancel your claims-made policy. It lets you report claims for incidents that happened while your policy was active but are filed after it’s canceled.

Here’s why you might need it:

• Medical malpractice claims often come YEARS after the treatment occurred. Think about a patient discovering a complication months or years later.
• Without tail coverage, you’ll be on the hook for any claims filed after cancellation. And trust me, lawsuits can cost big bucks. We’re talking hundreds of thousands or even millions of dollars.

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Things to Consider Before Canceling

Before you cancel y