Tail Coverage
Definition of "Tail coverage"
Liability insurance that extends beyond the end of the policy period of a liability insurance policy written on a claims-made basis. Liability claims are often made long after the accident or event that caused the injury. Many liability policies are written on a claims-made basis, which means the insurer pays only claims that are received during the policy period. In that case, an insured needs tail coverage to protect against claims not known about at the end of the policy period. For example, a doctor retires, allows her insurance policy to lapse, and a claim comes in six months later. In order to protect herself, the doctor purchases tail coverage.
Popular Insurance Terms
Hybrid between facultative reinsurance and treaty reinsurance where the ceding company may elect to assign certain risks that the reinsurer is obligated to accept. ...
Same as term: engineering approach; human approach ...
Written agreement attached to a policy to add or subtract insurance coverages. Once attached, the endorsement takes precedence over the original provisions of the policy. For example, under ...
Value of a share of common stock, derived by dividing the total common stockholders' equity at the end of a period of time by the total number of shares outstanding at the end of the same ...
Section of the code that qualifies that the death benefit paid under a life insurance policy is received by the beneficiary income-tax free. These tax consequences apply regardless of the ...
Corporate or government security that pays interest and obligates the corporation or government agency to pay that interest at the end of specific time intervals, and to pay the principal ...
End of a defined time period that dividends become payable to the policyholder. ...
Applicable rate, in property insurance, of each location multiplied by the value of the real and/or personal property at that location, all of which is divided by the total value of all ...
Losses that have occurred within a stipulated time period whether paid or not. ...
Have a question or comment?
We're here to help.