As a business owner, you have liability insurance to cover a variety of aspects of your business including property, errors and omissions, directors and officers and even cyber liability. However, these policies only go into effect when the policy is in force or was in force at the time of the claim. Tail coverage insurance offers benefits that extend those reporting times.
It is common for businesses or professionals to change their insurance carrier during their career. Unfortunately, there are times when that change could put you at risk for missing coverage for prior claims. Tail coverage steps in and covers those claims while you had a policy with another company. Axis Insurance Services reports that you receive additional claim reporting time with an extended reporting period endorsement on your liability or employment coverage policies.
Retirement is still a goal for millions of Americans. The last thing you want to do is retire from a job and have your professional liability insurance lapse. When you no longer need a claims-made policy, tail coverage can still provide protection for the time you did have coverage should a lawsuit arise.
The extended liability protection offered by tail coverage insurance can be a big benefit for professionals and business owners. Depending on the company, the cost of the coverage is a percentage of the final premium of the claims-made policy.