Who Is Responsible For Paying Insurance Tail Coverage Upon Termination Of The Employment?
Tail coverage provides professional liability insurance for those cases arising out of the work you performed for a medical group, but where the claim is made after you leave the group. Probably the hottest negotiation point is whether the employer or employee should pay for tail coverage. The answer is not clear and the costs may be significant, particularly if the family physician has provided obstetrical care. I contend that under California law the employer is responsible for the acts of the employees, regardless of when the claim was made. Accordingly, it is up to the employer to mitigate against the risk of liability by purchasing malpractice insurance, including tail coverage. Due to the significant expense, many employers attempt to shift the burden of the cost of tail coverage onto the departing employee.
