Changing Jobs, Joining a Group, or Buying a Practice: 7 MPL Questions to Ask Before You Sign
A new job, partnership, or practice purchase is an important career decision. Medical professional liability insurance should be part of that conversation from the beginning—not an issue addressed after the agreement is signed.
A change in employment or ownership can affect your retroactive date, prior-acts coverage, tail obligations, policy limits, and responsibility for past patient care. Before signing, ask these seven questions.
- What happens to my current coverage?
First, determine how your existing policy works and what happens when you leave your current practice.
If you have a claims-made policy, coverage generally depends on when the care occurred and when the claim is reported. Your retroactive date determines how far back the policy may respond. A new policy with a later retroactive date could leave earlier patient care uninsured.
- Who is responsible for prior acts and tail coverage?
Claims may arise months or years after care is provided. If your current claims-made policy ends, you may need tail coverage—also known as an extended reporting endorsement—to protect against claims involving earlier services.
A new insurer may offer prior-acts, or “nose,” coverage instead. Ask which option will apply, when it becomes effective, and who pays for it.
Your employment or partnership agreement should address tail responsibility if you resign, retire, become disabled, are terminated, or sell your interest in the practice.
- Who is actually insured?
Find out whether the policy covers only you or also includes the medical group, practice owners, employees, contractors, subsidiaries, and affiliated entities.
This is especially important when joining a larger organization or purchasing a practice with multiple legal entities. Ask for the named-insured information and confirm that it matches the actual business structure.
- Are all of my professional activities covered?
Physicians may provide care in hospitals, surgery centers, nursing facilities, urgent care clinics, or through telemedicine. Some also take call, volunteer, consult, or maintain a separate practice.
Disclose these activities and confirm that they are covered. Do not assume an employer’s policy automatically applies to every service you provide.
- Are the limits and exclusions appropriate?
Review both the per-claim and aggregate limits. The appropriate amount depends on your specialty, procedures, practice setting, location, hospital requirements, and contractual obligations.
Also review exclusions. Administrative work, consulting, ownership interests, or other nontraditional services may be treated differently from direct patient care.
- What happens if the practice is sold or reorganized?
A sale or merger may change the named insured, policy limits, retroactive dates, reporting requirements, and responsibility for historical claims.
The purchase agreement should address care provided before the transaction, known or potential claims, and coverage for services provided afterward. Have the insurance representative review the transaction before it closes.
- Who handles claims and coverage questions?
Know who reports claims, how adverse outcomes and patient complaints should be handled, and how to reach the claims or risk management team.
Before signing, request a written summary of the policy type, retroactive date, limits, exclusions, prior-acts coverage, and tail obligations. Have legal counsel review the contract and discuss the insurance provisions with an experienced medical professional liability representative.
Protecting and Empowering Quality Care
A careful review before a career or ownership transition can help prevent coverage gaps and unexpected expenses. MPL insurance should protect both the work you are about to perform and the patient care you have already provided.
HSG is your trusted partner for protecting and promoting quality healthcare. HSG provides trusted, comprehensive, and competitive insurance and risk management solutions designed to support providers and organizations so they can focus on serving patients and communities.
If you are considering a job change, joining a medical group, purchasing a practice, or restructuring your current organization, Monte Shields, HSG’s Director of Business Development, would be glad to discuss your upcoming plans and help connect you with the appropriate resources.
You can reach Monte at mshields@hsg-group.com or (573) 545-5927.