For years, most carriers required three things to waive the tail premium at retirement: five consecutive years with the same carrier, age 55 or older, and complete retirement from medical practice.
If you did not qualify, you typically had to buy tail coverage, which often costs about twice the final‑year premium.
What Changed in 2024–2025
Carriers have softened the rules. The key updates are:
1. Shorter Loyalty Periods
- MedPro: Free retirement tail after 1 year insured.
- Florida Doctors Insurance Co.: Free retirement tail after 3 consecutive years.
- ProAssurance: Still requires 5 consecutive years for a free retirement tail.
2. Lower or No Age Thresholds
- MagMutual: Free retirement tail after 1 year of coverage if age 50+.
- MedPro: No age minimum listed.
3. Limited Work Allowed in Retirement
- Example: Some carriers now allow limited moonlighting, locums, or volunteer work without voiding free tail eligibility.
- Practical take: Always confirm your carrier’s definition of “retirement” before making plans.
Source: https://fastercapital.com/topics/the-benefits-of-tail-coverage-for-your-peace-of-mind.html
State Snapshot: Florida, Georgia, and Tennessee
Florida
- Florida Doctors Insurance Co.: Free retirement tail at any age after 3 years.
- MedPro: Free retirement tail after 1 year insured.
- The Doctors Company: Free retirement tail for “qualified” members (criteria vary).
Georgia
- MagMutual: Free retirement tail after 1 year of coverage if age 50+.
- ProAssurance: Requires 5 years of consecutive coverage.
- The Doctors Company: Free retirement tail for qualified retirees (tenure varies).
Tennessee
- SVMIC: Offers a Mutual Value Plan (a loyalty payout) requiring age 50+ and 5 years vesting; tail rules are separate and stricter.
- ProAssurance: Requires 5 years of consecutive coverage for free tail.
- MagMutual: Follows its 1-year-plus age 50 rule in Tennessee.
Carrier Comparison at a Glance
- MedPro Group: Free retirement tail after 1 year insured; no age minimum
- MagMutual: Free retirement tail after 1 year insured if age 50+
- The Doctors Company: Free retirement tail for “qualified” retirees (no fixed years stated publicly)
- ProAssurance: Free retirement tail after 5 consecutive years on a claims-made policy
- Florida Doctors Insurance Co.: Free retirement tail after 3 consecutive years, any age
- Physicians Insurance (example): Permits limited locums and volunteer work while retired
Does Specialty Change Eligibility?
Eligibility rules are generally the same across specialties within a carrier. However, the cost of tail coverage varies because malpractice premiums differ by specialty.
When Free Tail Coverage Isn’t Available
Not every physician qualifies for a free retirement tail. Common situations requiring physicians to buy their own tail coverage include:
- Leaving a group practice where coverage was provided, and being required to purchase tail at departure
- A group obligated to buy tail for a departing physician
- Selling a private practice and ending individual coverage
- Joining a hospital or a new group setting that provides future coverage but not past acts
In these cases, physicians need stand-alone tail coverage to remain protected.
Source: https://www.gallaghermalpractice.com/blog/post/how-stand-alone-medical-malpractice-tail-policies-can-save-money/
How Stand-Alone Tail Coverage Works
Key Features
- Extended Reporting Period: Provides additional time (1 year, several years, or unlimited) to report claims after a policy expires
- Coverage for Past Incidents: Covers claims made after expiration for incidents that occurred during the active policy period
- Cost: Typically priced at 200–250% of the expiring premium with your carrier
- Non-Cancellable: Once purchased, it guarantees continuous protection for the agreed period
Example Scenario
Dr. Johnson retires on December 31, 2023. In 2024, a patient files a claim from an incident in 2022. Without tail insurance, there would be no coverage since the policy had expired. With tail coverage in place, the claim would be fully covered.
Why Consider PLI Consultants for Stand-Alone Tail
With physician movement and turnover increasing, many doctors now need flexible, affordable tail solutions beyond what their carrier offers. At PLI Consultants, we:
- Work with a network of A-rated stand-alone tail carriers
- Provide coverage nationwide from our headquarters in Florida
- Deliver savings of 10%–35% compared to incumbent carrier quotes
- Shop multiple carriers and make them compete for your business
- Ensure you receive the most cost-effective solution without sacrificing coverage quality
Before purchasing malpractice tail coverage through your carrier, compare your options. Contact PLI Consultants to calculate your premium, review multiple quotes, and secure the best protection at retirement.
A Simple 5-Year Plan for Physicians Nearing Retirement
- Map your target retirement date. Count backward to see when you’ll meet your carrier’s free-tail rule.
- Avoid late-career switches. Changing carriers can reset your tenure clock.
- Confirm your carrier’s retirement definition. Ask in writing if moonlighting, consulting, or serving as a medical director affects eligibility.
- Budget a fallback. If you won’t qualify, expect purchased tails to cost about 200% of your last premium.
Quick Disclaimer
Carrier rules change and hinge on policy wording. Always confirm the latest terms directly with your carrier or broker before making retirement or coverage changes.
