Covering Your Tail in Locum Tenens
With around 7% of physicians currently in locum tenens roles—and over half of healthcare organizations planning to increase their use of these positions—it’s likely that you’ll find yourself stepping into a temporary role at some point in your career (CHG Healthcare, 2024).
The Benefits of Locum Tenens
Working locum tenens offers numerous advantages:
Flexibility: Choose your hours and locations, allowing for a personalized work-life balance.
Exploration: Experience new states or facilities without long-term commitment.
Evaluation: Test out potential long-term employers before committing full-time.
Increased Earnings: Enjoy potentially higher pay rates compared to traditional positions.
While the perks are perky it’s essential to carefully review your locum tenens contract, particularly the professional liability section.
Understanding Professional Liability Insurance
As a physician, it’s crucial to know what type of professional liability insurance your employer provides. There are two primary types:
Occurrence-Based Insurance: Covers any incidents that occur during the policy period, even if claims are filed after the policy ends.
Claims-Made Insurance: Covers incidents only if they occur during the policy period and while the policy is active.
If your locum tenens employer offers a claims-made policy, you need to ensure the contract includes tail coverage to protect yourself from future claims.
Navigating Tail Coverage
While many locum tenens employers provide tail coverage, it’s not always guaranteed. Some contracts may include carveouts, which can exempt you from receiving this coverage. For example, if you terminate the agreement for convenience, you might not qualify for tail coverage.
Here are key considerations regarding tail coverage:
Amount of Coverage: Ensure that the tail coverage is equal to the amount of insurance carried during your contract.
Terms of Coverage: Read your contract carefully to identify any carveouts or conditions related to tail coverage.
Final Thoughts: Cover Your Tail
To protect yourself and your career, follow these steps:
Identify Your Insurance Type: Determine whether your employer offers an occurrence-based or claims-made policy.
Review Your Contract: Look for carveouts and negotiate for favorable terms regarding tail coverage.
Seek Professional Guidance: Reach out to The Contracts Counsel to review your contract and ensure your liability protection is adequate.
By taking these steps, you can confidently navigate your locum tenens journey while covering your tail.
