Tail Coverage

Health Care Stabilization Fund Continuing Coverage (Tail Coverage)

On and after July 1, 2014 health care providers who become inactive (i.e. discontinue their Kansas practice, inactivate their active Kansas license, and cancel their primary professional liability insurance coverage) are eligible for continued Fund coverage without any additional payment. This is similar to an extended reporting endorsement issued by a commercial insurer, but the coverage is statutory. There is no policy issued nor is there a premium payment required.
This continued professional liability coverage or “tail coverage” provides coverage for future claims or lawsuits made against an inactive health care provider for professional services rendered while the health care provider was in compliance with the Health Care Provider Insurance Availability Act. The amount of Fund tail coverage available for a claim or suit is the amount of Fund coverage in effect on the date of the incident giving rise to the claim plus the minimum primary limits (currently $200,000 per claim as set forth in K.S.A. 40-3402).
For health care providers who were Kansas residents when active and in compliance, the Fund provides continuing coverage for professional services rendered inside or outside the state of Kansas. If suit is filed in Kansas the plaintiff is required by law to serve the Fund with a copy of the petition. If you receive notice of a claim filed in a state other than Kansas, it is important for you to notify the HCSF Board of Governors immediately. It is strongly recommend that you immediately forward to the HCSF any notices of claims or suits arising out of your professional practice.
Health care providers who did not reside in Kansas while active are afforded the Fund’s continuing coverage only for professional services rendered in the state of Kansas. Non-residents are encouraged to immediately forward notices of claims or suits arising out of their professional practice in Kansas.
We encourage all health care providers to retain past insurance records for future reference should any professional liability claim or suit be made against them. If a lawsuit should arise, it is advisable to notify the insurance company which provided the primary professional liability insurance while the health care provider was actively engaged in rendering professional services. If the primary carrier was notified of a claim prior to the expiration of the policy, the insurer may have coverage for the suit. This is particularly important in light of the provisions of the Fund law stating that the Fund will be excess of any other applicable professional liability insurance.