What Is Tail Insurance and Why You Need It

Most professionals understand the importance of liability coverage or malpractice insurance. If you are in an industry where you are at risk for lawsuits or litigation, then you may want to consider tail coverage.

What Is Tail Coverage?

A tail policy or an extended reporting period endorsement provides you with a way to report claims after your policies expire. This is not an extension of your policy period but instead a safety net in case you face any claims against you after your policy expires.

Do You Need Tail Coverage?

Say that you leave your current job and your insurance expires. This might not seem like a big deal at first, but then imagine what could happen if someone files a lawsuit against you for work that you performed at your last job. For instance, if you were a lawyer and you advised a client and he or she filed a lawsuit after you left the firm or your insurance was canceled. You would have to pay for legal fees on your own. Tail coverage protects professionals when this happens. Your insurance may expire, but you still have coverage for work that you already completed.

Tail coverage policies are a safety net. They provide you with the reassurance that you can handle any lawsuit or liability claim that comes your way.

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