WHAT IS A TAIL OR EXTENDED REPORTING ENDORSEMENT?
“Tail coverage,” also called an extended reporting period, is a slang term for an Extended Reporting Period (ERP) endorsement on your policy which provides protection for claims that are filed after a claims-made policy has been non-renewed or canceled. This coverage is optional, and the need can arise if the professional organization is acquired or goes out of business, or a decision is made not to purchase insurance. When you cancel your insurance coverage for whatever reason, a tail endorsement provides coverage should someone sue you after the policy terminates. The tail coverage provides coverage and the company must defend that claim. You generally have 30 days after your policy expires to purchase a tail endorsement. Coverage for acts occurring prior to the policy period is called “prior acts coverage,” and the period prior to the policy period for which claims are covered is called the prior acts period. Prior acts coverage is usually only provided when a claims made policy has
