When Do You Need Tail Coverage Insurance?

Tail Coverage Insurance

Identifying the right times to use specialized risk management resources can be a huge help to your business, and not just because they keep you covered, but because they keep you covered the right way. Take tail coverage insurance for example. Standard policies only allow you to make claims during the policy’s coverage window. Losses identified after the policy ends that took place before it ended are simply unrecoverable under most circumstances, unless you use tail coverage or maintain a policy continuously. Since tail insurance is cheaper than maintaining an active policy, it is the cost effective choice for many projects as they end.

Examples of Tail Coverage Scenarios

Whenever you wind down a project or leave a job, there’s a potential need for tail coverage. Professionals who maintain liability insurance often need tail coverage to protect them during the transition, especially when changing states and insurers. Physicians commonly rely on it for this purpose, and sometimes lawyers as well. Financial professionals with exposure due to fiduciary obligations should also look into the ways tail coverage can protect them when moving between occupations. Less commonly, businesses that provide contracted services on the B2B market also need tail insurance. Talk to an agent who specializes in this kind of coverage to learn more about whether you should invest in a tail insurance policy.