When a new doctor joins a group, should the new group purchase retroactive coverage for the new doctor?
The group and the new doctor probably have two different perspectives on this issue. The group prefers not to purchase retroactive coverage for the new doctor for two reasons. The first is the increased expense of a first-year claims-made policy versus a more expensive policy that includes retroactive coverage. The second reason is that the group does not want the new doctor’s previous practice risk exposure to potentially harm the claims record of the group with its insurer should the new doctor have a claim that is a result of his/her previous practice. The only reason a group would ever want to purchase retroactive coverage for a new doctor is to make its recruitment efforts easier. From the new doctor’s perspective, they often prefer to have their new group pick up the retroactive coverage from their old practice so that they do not have to purchase an expensive “tail” to switch groups. For doctors coming from out of state, the option of not purchasing a “tail” and having the group
