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5 Contract Red Flags Every Locums Physician Must Catch Before Signing

From non-compete radius clauses and tail insurance coverage to guaranteed minimum hours and travel cancellation terms.

Ludwig Koeneke Hernandez, MD
August 10, 2026
5 min read

Not all locums contracts are created equal. A contract offering a high hourly rate can quickly turn into a financial headache if crucial clauses like malpractice tail coverage or travel reimbursement caps are buried in the fine print.

Critical Red Flags to Audit:

1. Malpractice Tail Coverage: Ensure your agreement specifies claims-made insurance with prepaid tail coverage or a occurrence-based policy.

2. Guaranteed Shift Hours: Ensure you are compensated if a hospital cancels your shift with less than 14 days notice.

3. Restrictive Non-Compete Clauses: Watch out for broad non-competes that attempt to block you from working directly with a facility for 2+ years.

4. Overtime & On-Call Rates: Verify exact terms for call pay, call-back pay, and overtime beyond scheduled shift hours.

At Quantum, our provider portal gives clinicians full visibility into agency contract terms and rate benchmarks across specialties.

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