If you are an engineer, lawyer, real estate agent or other professional, you probably spent a great deal of time, effort and money earning your credentials. A simple error or omission could ruin your investment and jeopardize your future. As such, you probably have E&O coverage as part of your professional liability insurance. Nonetheless, without tail coverage insurance, your regular policy may be insufficient to protect you and your career.
Sometimes the insurance industry has some confusing jargon. When talking about tail coverage, agents simply mean extending the reporting period for a claim. For example, if your existing E&O policy requires reporting in an 18-month window, it won’t cover claims made after the time frame expires. A tail policy likely will. Tacked onto your regular policy, the tail coverage gives you extra peace of mind.
Purchasing on Time
It is a good idea periodically to review your business liability insurance. If any of the following applies to you, you may need to add tail coverage to your E&O policy?
- New contracts
- New business lines
- New insurance
- Other major events
With the right tail coverage insurance, you get more out of your basic E&O policy. Rather than leaving the well being of your career, finances and business to chance, talk to an experienced agent to find out if you need to add tail coverage insurance to your business package.