Tail coverage primarily protects insureds after the end of which type of policy?

Tail coverage primarily protects insureds after the end of which type of policy?

• A. Occurence policy
• B. Health insurance
• C. Property policy
• D. Claims-made policy

Answer: (D)

Tail coverage, or extended reporting period, is designed for claims-made policies. In a claims-made policy, coverage is triggered by the claim being made while the policy is in force, not by when the event occurred. If the policy ends, claims that arise from incidents during the policy period but are reported later wouldn’t be covered unless tail coverage is purchased. Tail coverage steps in to extend the reporting window so claims can be reported after termination as if the policy were still active. Occurrence policies, health insurance, and property policies do not operate on this claims-made timing in the same way, so tail coverage isn’t needed for them.

Tail coverage, or extended reporting period, is designed for claims-made policies. In a claims-made policy, coverage is triggered by the claim being made while the policy is in force, not by when the event occurred. If the policy ends, claims that arise from incidents during the policy period but are reported later wouldn’t be covered unless tail coverage is purchased. Tail coverage steps in to extend the reporting window so claims can be reported after termination as if the policy were still active. Occurrence policies, health insurance, and property policies do not operate on this claims-made timing in the same way, so tail coverage isn’t needed for them.