If you are worried about a claim being made against you after the cancellation or expiration of your insurance policy, then tail coverage may be a good addition to make to your policy. What is a tail policy? Tail policies give the policyholder the benefit of ongoing protection, even after the end of the policy. However, this addition is not a minor increase in coverage or cost.
Tail Coverage Addition to Claims-Made
Tail coverage insurance is an addition specifically for claims-made policies in which ongoing coverage is necessary but a standard policy is no longer needed. Usually, you can obtain this supplement to your claims-made policy for one year. It requires an additional premium which is often 100 too 300 percent of the premium of the claims-made policy to which it is added.
The Necessity of More Than Only a Claims-Made Policy
The industry experts at Axis Insurance Services report that claims-made policies often only cover claims that are made and reported while the policy is active. This leaves any claims later on in your own hands, even if the event the claim is based on occurred while the policy was in effect. That is why a tail policy is so helpful. Tail coverage insurance can protect a business owner from a significant amount of risk and is often a worthwhile investment.