Tail Coverage

What Is Tail Coverage? Who Needs It?

If you’ve ever thought about what it would take to wind down a project at your company while maintaining support for issues related to it, you’ve thought about a situation where tail end insurance coverage could come in handy. If you’ve never looked into them before, the easiest way to think of tail coverage is as an extension to your ability to file claims for one of your other insurance policies. The issue leading to the claim still has to have occurred during the original period of coverage, but the claim can come during any time in the extended window, instead of being bound by the end of the original coverage period.

Uses for an Extended Reporting Window

Often, this coverage is sought when businesses wind down operations at a location, to ensure important forms of coverage are extended far enough for affected parties to discover any previously undetected damages. This could be anything from third party product liability to repetitive stress injuries discovered weeks or months after operations cease. You can find tail end policies for most major types of business insurance, which makes it a useful tool for hard to foresee situations. Sometimes, you can get tail policies drafted into the original insurance coverage, but if you didn’t, you can also find carriers whose business is built around providing those policies to clients like you.