tail insurance

Insurance exists to protect people in the event of an accident or incident. In some cases, though, an incident or accident occurs and it takes some time before someone realizes the impact it had. Sometimes several months can pass before full ramifications of an event can be determined. What if a policy expires before someone realizes there is a significant issue and wants to file a claim? Is it too late? Maybe not.

What is Tail Insurance?

Tail insurance is a specific type of insurance coverage. Technically, it’s generally an additional add on coverage which is also sometimes referred to as Extended Reporting Endorsement. This type of insurance enables a person to file a claim against someone even after their policy has expired. It can also be used after a system has been canceled for an indeterminate amount of time. However, in general, the incident or cause for a claim must have occurred before the policy’s termination date.

Type of Tail Insurance

Tail Insurance can usually be found in the following policy types:

Errors and Omissions Insurance
Professional Liability Insurance
Directors and Officers Insurance

Again, extended reporting coverage does not extend the insurance coverage period, but it does give a person or agency additional time to report something it needs arises down the road.

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