Practice Management Alert

Question: I’m a clinician considering moving to a different state. What are the basics I need to know about whether my current malpractice coverage follows or whether I need a new policy?

Colorado Subscriber

Answer: Definitely check with your insurance broker for specifics pertaining to your exact policy and situation.

“When you leave a state, you need to make sure that you are covered not only in the new state moving forward, but also for your prior acts exposure in the state you are leaving,” says Matt Thompson, JD, executive vice president and assistant national sales manager of Diederich Healthcare.

Thompson adds: “Covering your prior acts exposure from the prior state, as well as those from the new state can be accomplished by carrying out one of the following strategies:

1. “Notifying your current carrier you are moving and getting them to include prior acts for the previous state as well as your new state exposure moving forward.”  (This is not acceptable in Pennsylvania.)

2. “Purchasing a claims-made policy from another carrier – one that includes prior acts for the previous state as well as your new state exposure moving forward.” (This is not acceptable in Pennsylvania.)

3. “Buying a tail from your current carrier. Starting retro date inception (RDI) on a new claims-made policy or occurrence.

4. “Purchasing standalone tail from another carrier. Starting retro date inception (RDI) on a new claims-made policy or occurrence.”

Don’t leave your malpractice coverage on the bottom of your to-do list when moving, as forgetting to cross any t’s or dot any i’s could mean a bumpy and complicated move.