When simply changing malpractice insurance companies tail coverage is rarely needed these days because the new insurance company will usually assume prior acts.
When changing jobs, the need for purchasing tail coverage will be determined by whether the new employer is willing to assume your prior acts. If so, you won’t need tail coverage. If the new employer will not assume prior acts, you will need tail coverage.
Important – even the best business relationships can come to an end, so I highly recommend that all medical groups make use of written physician employment agreements. The employment agreement should specify who should pay for malpractice insurance, who can amend the policy, who can cancel the policy, who is responsible for paying tail coverage, etc. Having a solid employment agreement now will prevent unanticipated expenses and/or costly litigation in the future. More information on tail coverage can be found on our website here: https://sopyla.com/2020/03/30/what-is-medical-malpractice-insurance-tail-coverage/.