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Tail Coverage

   Also found in: Financial 0.01 sec.
Tail Coverage
A malpractice insurance rider or supplement to a claims-made policy that provides coverage for an incident that occurred while the insurance was in effect but was not filed by the time the insurer-policyholder relationship terminated

tail coverage
Malpractice A malpractice insurance rider or supplement to a claims-made policy that provides coverage for an incident that occurred while the insurance was in effect but was not filed by the time the insurer-policyholder relationship terminated. See Malpractice, Statutes of limitations. Cf 'Going bare.', Nose coverage.


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In other words, tail coverage extends the life of the claim policy and makes it current.
When an organization goes out of business, it should always buy the tail coverage so when the coverage stops, the policy covers the officers and directors for a period of time.
Absent the two physicians entering retirement where the tail coverage premium would be waived, the tail coverage expense to remain in practice was quite large.
 
 
 
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