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Securing Extended Insurance Coverage

Insurance Policy

After your insurance policy has been canceled or the policy term has run out, the nature of your business might still leave you open the possibility of a claim filed against you. When you need supporting coverage even though you don’t carry an official insurance policy, tail insurance can keep you from facing the expenses of settling a claim on your own.

Who Needs Extra Support?

According to the information found at, tail coverage is also considered an extended reporting period. The extended coverage is often supplied for an additional feed, but it applies to claims-made insurance policies such as:

  • Directors and officers insurance
  • Errors and omissions
  • Malpractice
  • Professional liability policies

With a standard occurrence-based policy, so long as the event happened during the policy period, the claim can be made and coverage is applicable. However, a claims-made policy addresses the time a claim is filed, and in cases of professional services, an adverse event or situation may occur after a policy has been canceled or expired.

The Benefits

Tail coverage is usually the most effective when it addresses claims that are made during transitional insurance periods. If you are changing providers or you are closing your business and no longer need insurance, this supplemental coverage can bring financial peace of mind in the event a liability situation arises.  Your liabilities are covered even though your formal insurance policy designed to address these risks or exposures has been terminated.