Attorneys, doctors and other professionals have malpractice lawsuit risks. If your policy ends before someone files a lawsuit, you could be held accountable for those costs. This is why it is important to have tail insurance. Here is what you need to know about tail coverage.
What Is Tail Coverage?
If you visit axisins.com, it explains that tail coverage provides a time period where the insured retains coverage for claims that resulted from services provided prior to the expiration date on the policy. If your policy reporting period is over, you need tail coverage as an extended reporting period.
Who Needs Tail Coverage?
Tail coverage is important if you plan to retire, change professions or if you end your insurance coverage for any reason. When you retire, your malpractice policies are over too. Even though you stop practicing, it does not mean that you are free from lawsuits. Everything that you do now and every service that you perform is at risk in the future. Tail coverage helps you because what you do now, could be something that you have to pay for later.
When it comes to insurance coverages, tail coverage is extra protection that helps you when your policy ends. Keep in mind that clients do have time to file a lawsuit after a service is performed. This time period may extend past your policy period.