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Tail coverage
Tail coverage is an addition to a claims-made policy. It extends coverage for incidents that happened during the time you had your policy, but a claim was not filed until after your policy expired or was canceled. Tail coverage is another name for an extended reporting period.
What is tail coverage?
Tail coverage is an endorsement (or an addition) to your insurance that allows you to file a claim against your policy after it expired or was canceled. It applies to claims-made insurance policies and typically involves paying your insurer an additional fee.
Tail coverage is also known as extended reporting period (ERP).
You’ll find tail coverage in claims-made policies, such as professional liability insurance (also called errors and omissions insurance or malpractice insurance) and directors and officers insurance (D&O).
Tail coverage does not apply to occurrence-based policies. You don’t need tail protection for occurrence-based policies because coverage is available as long as the insurable event occurred during the policy period, even if you canceled your policy later.
Tail coverage is different from nose coverage. Nose coverage provides protection back to the first date of continuously maintained insurance coverage (typically with professional liability or E&O insurance). This means your current claims-made policy will even pay for incidents that happened under another policy as long as you kept your insurance active. The first date of coverage is also known as a retroactive date.
View video transcript.
[video: an animated header displays the Insureon logo. Underneath it, a subheading displays the text: "Understanding tail coverage for small business insurance"]
MALE VOICEOVER: When it comes to business insurance, understanding tail coverage could be the difference between being protected... or paying out of pocket after your policy ends. So, what is tail coverage?
[video: an illustrated header displays the text: "What is tail coverage?"]
Tail coverage, sometimes called extended reporting period coverage, protects you after your claims-made policy ends. It gives you extra time to report claims for incidents that happened while your policy was active, even if you no longer have that policy.
[video: an illustrated header displays the text: "Tail coverage gives you extra time to report claims even if your policy is no longer active."]
For example... Say you had professional liability insurance while running your consulting business. A few months after your policy expires, a client files a claim about the work you completed. Without tail coverage, you’d have no protection, because your old claims-made policy no longer applies.
[video: an illustrated header displays the text: "Without tail coverage: No coverage after your policy expires"]
With tail coverage, that claim is still covered.
[video: an illustrated header displays the text: "With tail coverage: Claims are covered from the period the policy was active."]
Think of tail coverage as extra protection that extends your claims window, but only for past work. It doesn’t cover new incidents.
[video: an illustrated header displays the text: "Tail coverage only applies to past work, not new incidents."]
Tail coverage is most commonly added to claims-made policies, like professional liability or errors and omissions insurance. You might need it when you retire or close your business, change insurance carriers, or switch from a claims-made to an occurrence-based policy.
[video: an illustrated header displays the text: "You might need tail coverage when you:"]
[video: an illustrated header displays three bullets below the previous text: "Retire or close your business"; "Change insurance carriers"; "Switch to an occurrence-based policy"]
Without tail coverage, you risk a coverage gap... meaning any late-filed claim would be covered by you. When deciding on tail coverage, you should consider how long after your work someone could file a claim... the cost, which is usually a percentage of your premium... and whether your new policy includes “prior acts” coverage instead.
[video: an illustrated header displays the text: "When deciding on tail coverage, consider:"]
[video: an illustrated header displays three bullets below the previous text: "How long someone can file a claim after your policy"; "The cost of tail coverage"; "If your new policy includes “prior acts” coverage"]
For most small business owners, tail coverage offers peace of mind knowing your past work stays protected.
At Insureon, we make it easy to get the right types of policies for your business needs.
[video: an illustrated white header displays the text: "Insureon is the #1 digital agency for small business insurance."]
Compare insurance quotes from top carriers and find coverage that fits your needs and your future. Click the link to get started.
[video: an animated header displays the Insureon logo]
What are the benefits of tail coverage?
Tail coverage protects your business in times of transition. It enhances both your financial security and peace of mind, allowing you to focus more on running your business. For instance:
When you retire from your business, tail coverage makes sure you continue to have liability protection even though you canceled your claims-made insurance policy.
When you switch to a new occurrence-based policy, tail coverage protects your prior acts (work you did while you were insured elsewhere). Without it, you’d only have coverage for incidents that occur when your new policy is active.
Some companies impose a narrow time window for buying tail protection after cancellation.
How much does tail coverage cost?
Insurers typically charge a fixed percentage of your professional liability insurance policy cost, often between 100 percent and 300 percent of your final premium.
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How do you get tail coverage?
Contact your Insureon agent to add tail coverage to your insurance policy. It’s a good idea to do this before canceling your policy because some companies impose a narrow time window for buying tail protection after cancellation.
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Updated: November 20, 2025
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