Tail coverage is a policy that protects you after your insurance policy expires. This is particularly important for physicians, lawyers and those who work in finance. Most often, you may hear about tail coverage in reference to malpractice claims. This is what you need to know about tail coverage insurance.
When Is Tail Coverage Important?
Say that you are a medical professional and you change practices or retire. Your insurance coverage ends, but a patient from before files a claim against you for malpractice. Since you no longer have coverage, you have to pay the legal fees and any awards out of pocket. It doesn’t matter if you had insurance when it happened.
However, when you have tail coverage, this covers the gap between policies. Your tail policy can cover you for lawsuits that happened while you were insured but after the policy expired.
Do You Need Tail Coverage?
Whether you work in the medical or legal field, you probably need tail coverage. If your industry is prone to lawsuits and claims from clients, then you need tail coverage to protect you, in case there are claims filed after your policy expires.
When it comes to insurance coverage, you can best protect yourself and your career when you have the appropriate insurance policies.