In Wojnicki v. Warren Geriatric Village, Inc. a malpractice action against Dr. Manisha Gupta and Anchor Senior Medical Services, LLC., a Michigan state court ruled that the nursing facility must indemnify Dr. Gupta for failing to provide the tail portion of a claims made malpractice policy.
The issue in this case was which party is responsible for the tail, or reporting endorsement, when the contract does not specifically address the problem. The contract in this case simply required the facility to provide malpractice coverage during the period of employment. The court concluded as follows:
“We conclude that this contract provision is not ambiguous. The plain language of the employment contract affords only one interpretation: Grand River agreed to provide professional liability insurance to Gupta that would cover the period of her employment. The alleged malpractice that gave rise to the underlying suit occurred during the period of Gupta’s employment with Grand River. Therefore, Grand River was contractually obligated to provide insurance that would cover this malpractice.”