What does professional liability insurance typically cover and require?

• A. Tail coverage extends protection after retirement.
• B. Insurers do not require disclosures.
• C. Coverage is only for hospital costs, not physicians.
• D. There is no obligation to report to the insurer.

Answer: (A)

Professional liability insurance for clinicians is often a claims-made policy, which means coverage is triggered by claims filed during the time the policy is active. Because of that setup, tail coverage becomes essential: it extends protection after retirement or after you switch carriers, covering claims made after the policy ends for incidents that occurred while the policy was in force. This feature directly addresses the practical need to guard against lawsuits filed years later for prior work.

Beyond tail coverage, these policies generally cover legal defense costs, settlements, and judgments related to alleged negligence, not just hospital charges. They also require disclosures and prompt reporting of claims or potential claims to the insurer; failure to disclose or timely report can jeopardize coverage. The statement about tail coverage extending protection after retirement accurately highlights a key protection offered by professional liability insurance, while the other points don’t reflect how most policies actually operate.