tail coverage
A claims-made liability policy covers claims made prior to the policy's expiration
or cancellation that arise from covered occurrences, acts, or omissions committed
on or after their retroactive date, if any. Most claims-made policies contain
an extended reporting period provision allowing the insured to elect to purchase
coverage for claims made during some specified period of time (e.g., 90 days,
1 year, 2 years) following expiration of the policy as long as the covered occurrence,
act, or omission is committed on or after their retroactive date, if any, and
their expiration date. Since this coverage applies at the end of the policy
period it is called tail coverage. Contrast this with nose coverage under which
a claims-made policy covers claims arising from covered occurrences, acts, or
omissions committed prior to its inception date.
Links for IRMI Online Subscribers Only:
CLI II.C;
PLI VIII.D