Tail Coverage
Extended reporting period protection that covers claims reported after your Claims-Made policy ends. Essential for retirement and career transitions.
What is Tail Coverage?
Tail coverage, also known as Extended Reporting Period (ERP) coverage, is an endorsement to a Claims-Made policy that allows you to report claims after your policy has ended or been canceled.
When you have a Claims-Made policy and decide to retire, change insurance carriers, or stop practicing, you need tail coverage to protect yourself from claims that may arise in the future for incidents that occurred during your active policy period.
Without tail coverage, you would only be protected for claims made and reported while your policy was active, leaving you vulnerable to future claims.
Key Benefits
- Retirement Protection
Continue coverage after retiring from practice
- Career Flexibility
Change jobs, carriers, or specialties with confidence
- Complete Peace of Mind
Never worry about uncovered claims from your practice years
- One-Time Purchase
Single premium for unlimited future reporting
When You Need Tail Coverage
Retirement
Leaving practice permanently and canceling your policy
Carrier Change
Switching to a new insurance provider
Job Change
Moving to a new employer with different coverage
Career Break
Taking extended time off from practice
Types of Tail Coverage
Unlimited Tail
Provides unlimited future reporting of claims. This is the most comprehensive option and is recommended for most practitioners.
- No time limit for reporting claims
- Complete protection for your entire career
- Typically costs 1.5-3x your annual premium
Limited Tail
Provides reporting coverage for a specific period (e.g., 1-5 years). Less expensive but offers limited protection.
- Fixed time period for reporting
- May not cover late-emerging claims
- Lower cost but higher risk
Important Considerations
- •Tail coverage must typically be purchased within 30-60 days of policy cancellation
- •The cost is based on your mature Claims-Made premium (usually your most recent year)
- •Some employers may provide free tail coverage when you leave
- •Your new employer may offer "prior acts" coverage instead, which eliminates the need for tail
- •Medical claims can be filed years or even decades after an incident
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