Medical Malpractice Tail Coverage Fund Planner

Plan ahead for malpractice tail coverage by translating premium multiples into an actionable savings target. Enter your current claims-made premium, the tail factor quoted by the carrier, and how many months remain before you leave or terminate the policy. Layer in any employer contribution and savings already earmarked to surface the cash you still need and the monthly deposit required to be ready on day one.

Current annual premium for your claims-made malpractice policy.
Multiplier quoted by the carrier (e.g., 2.0 for 200% of the annual premium).
Months remaining before the claims-made policy terminates or you change employers.
Defaults to 0%. Enter the percentage of the tail your employer will fund.
Defaults to $0.00. Include escrow balances, stipends, or HSA funds earmarked for the tail.

Verify tail coverage quotes, contract obligations, and tax treatment with your malpractice carrier, employer, and advisor before making financial commitments.

Examples

  • Example 1 — $18,000.00 premium, 2.25× tail factor, nine months, employer covering 50%, $5,000.00 saved ⇒ Build savings before the policy converts. Tail premium quoted: $40,500.00 USD | Employer covers: $20,250.00 USD (50.00%) | Physician responsibility: $20,250.00 USD | Savings already earmarked: $5,000.00 USD | Additional cash needed: $15,250.00 USD | Monthly saving target over 9 months: $1,694.44 USD
  • Example 2 — $12,000.00 premium, 1.75× tail factor, six months, employer contribution left blank, $25,000.00 saved ⇒ Already fully funded. Tail premium quoted: $21,000.00 USD | Employer covers: $0.00 USD (0.00%) | Physician responsibility: $21,000.00 USD | Savings already earmarked: $25,000.00 USD | Additional cash needed: $0.00 USD | Monthly saving target over 6 months: $0.00 USD

FAQ

What if my employer reimburses after I pay the tail?

Enter the reimbursement percentage in the employer contribution field so the model reflects the eventual net cost. You can hold the reimbursed amount in savings to replenish emergency funds once it arrives.

How do I account for financing a tail premium?

Use the additional cash needed output as the principal for a loan amortization or line of credit calculator. Compare the payment against your monthly savings ability before committing.

Can I model a tapered savings schedule?

Yes. Use the monthly target as a baseline, then front-load contributions early in the timeline to build a cushion in case collections slow or expenses pop up.

Does the tool consider policy surcharges or taxes?

Include premium taxes or surplus lines fees by increasing the tail factor to match the total invoice quoted by the carrier.

Additional Information

  • Tail factors typically range from 150% to 300% of the expiring premium depending on specialty, carrier, and how long the policy was in force.
  • Employer-funded tails often require completing a contract term—adjust the contribution percentage if you leave early or repay stipends.
  • Savings can include tax-advantaged accounts or dedicated sinking funds; removing them shows the full cash due at purchase.
  • Monthly target assumes equal deposits until the policy ends—make biweekly transfers to stay ahead of unexpected expenses.
  • All monetary values are shown in USD but remain valid in any currency if inputs use the same denomination.

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