Glossary

What is Tail Coverage?

An extended reporting period purchased at the end of a claims-made policy that allows claims to be reported after the policy has expired.

Full Definition

Tail coverage — formally called an Extended Reporting Period (ERP) — is an endorsement purchased at the end of a claims-made policy that extends the period during which claims can be reported. Tail coverage is critical when a claims-made policy is cancelled, non-renewed, or when the insured switches from claims-made to occurrence coverage. Without tail coverage, claims arising from incidents that occurred during the claims-made policy period but reported after the policy ends would have no coverage. Tail coverage premiums are typically 150-200% of the expiring annual premium for an unlimited reporting period.

Related Terms

Occurrence vs. Claims-Made

Extended Reporting Period

Prior Acts Coverage

Retroactive Date

Explore More

Related Coverage & Services

Directors & Officers (D&O) Insurance

D&O insurance protects corporate directors and officers from personal liability arising from management decisions.

Employment Practices Liability (EPLI)

EPLI covers claims by employees alleging discrimination, harassment, wrongful termination, and other employment-related issues.

Professional Liability / Errors & Omissions (E&O)

Professional liability insurance covers claims arising from errors, omissions, or negligence in professional services.

Occurrence vs. Claims-Made

Two fundamentally different policy trigger mechanisms that determine when an insurance policy responds to a claim.

Extended Reporting Period

A provision in a claims-made policy that allows claims to be reported after the policy expires, covering incidents that occurred during the policy period.

Prior Acts Coverage

Coverage under a claims-made policy for wrongful acts that occurred before the current policy's inception but after the retroactive date.

Retroactive Date

The earliest date for which a claims-made policy will cover wrongful acts — claims arising from acts before this date are excluded.

Business Insurance

Start Here

Have Questions About Tail Coverage?

Our advisory team can explain how this concept applies to your specific situation and help you make informed insurance decisions.

Call (800) 755-3469

Discovery

We sit down with you and ask the questions most brokers never do — your assets, your family, your business, your goals.

Strategy

We map your full risk picture and design a coordinated program that strengthens coverage and reduces your total cost of risk.

Execution

We place your program with elite carriers and handle every detail — applications, underwriting, and transitions.

Ongoing Optimization

Your advisor reviews your program as your life evolves — new assets, new ventures, new exposures — so coverage never falls behind.