Tail insurance is an optional type of coverage that can be purchased as an addition to various types of claims-made insurance, including medical malpractice, errors and omissions, professional liability and similar policies. Below are the answers to some of the most common questions asked about tail insurance coverage.
What is tail insurance?
A typical claims-made insurance policy will apply to claims only when they are filed during the coverage period and are based on incidents that occurred during the coverage period. Tail insurance applies when claims based on incidents that occurred during the coverage period are filed after the policy is no longer active.
When is tail coverage insurance necessary?
Tail insurance is useful anytime an individual or business loses coverage under a claims-made policy. This may occur when the covered party switches to a new insurance provider or cancels coverage altogether. After the coverage ends, tail insurance will apply.
What happens if I don’t have tail insurance?
If you don’t have tail insurance and a claim is filed after your original policy has expired, you or your company will be liable for all resulting expenses, including legal fees and any settlements or awards. Depending on the situation, the cost may be exorbitant.
How much is tail insurance?
The price of tail insurance varies based on several factors. However, in some cases, tail insurance may be more expensive than the original claims-made policy. Nonetheless, a single claim filed after a claims-made policy expires could potentially destroy your business. For this reason, tail insurance is often a necessary investment.
Are there alternatives to tail insurance?
For some professionals or business, there may be alternatives to tail insurance. For example, in cases where tail insurance is required during a switch from one insurance provider to another, nose insurance is an alternative. Nose insurance is essentially the opposite of tail insurance, covering claims filed based on incidents that occurred before the new policy was active.
Another possible alternative to tail insurance is an extended reporting period, which may be available from some insurers. This option is usually less expensive than tail insurance.
Where can I purchase tail insurance?
Axis Insurance is proud to offer tail insurance for our claims-made policies. We understand that different clients have different needs, so we are happy to customize your coverage based on your goals and specifications. Please contact us today to learn more or to request a quote.
About Axis Insurance
At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (201) 847-9175 to speak with one of our professionals.