A claims-made policy is an insurance plan that will extend coverage as claims are filed against the plan without restrictions on when the event at the heart of the claim occurred. This policy is a good choice for those who work in industries where it is common for a claim to occur long after the event occurred, such as in the medical field with a malpractice incident.
Extending Claims-Made Coverage
Even though claims are able to be made after an event has occurred, there is a time limit associated with these policies. Claims can be made at any time so long as the policy is in effect. When a claim is filed after a policy has been canceled or has expired, it is denied. Purchasing tail coverage extends the reporting timeframe for a claims-made policy.
Benefits of an Extended Reporting Period
With a supplemental tail coverage added to your policy, you can still file a claim against a policy that has been canceled or expired. Though this is also a finite reporting period, it works well for situations in the medical field, legal field, or other sectors where those who have changed careers or employment still need protection from prior client claims.
Personal liabilities don’t go away simply because you changed jobs or insurance providers. Tail coverage provides peace of mind to those who have had a lapse in insurance coverage.