Basic tail and the option to purchase a supplement tail are provided if the policy is canceled or not renewed by either the insured or the insurer. (Photo: utah51/Adobe Stock)
Part 1 of this series examined coverage may or may not apply for a claim filed under a claims-made policy vs. an occurrence policy, based on a question FC&S received regarding a policy for an insured who moved coverage from a claims-made basis to an occurrence form. The claims-made policy had a retroactive date going back to 2002, but in the occurrence policy, the date shown on the declarations was the same date as the policy effective date: April 18, 2022.
Tail coverage
A claims-made policy will include a basic extended reporting period, such as 60 days following the end of the policy expiration. This gives the insured a limited time to report claims that take place during the expiring policy period. The unknown and unreported occurrence will be automatically covered under the expired policy only if the claim is first made within 60 days after the end of the policy period. There is no charge for this basic extended reporting period – also known as tail coverage.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
