Tail coverage extends beyond the end of a liability policy written on a

Tail coverage extends beyond the end of a liability policy written on a

• A. Occurrence policy
• B. Claims-made policy
• C. Auto liability policy
• D. Non-renewal policy

Answer: (B)

Tail coverage is an extended reporting period for claims under a claims-made liability policy. In a claims-made policy, coverage is triggered when a claim is made, not when the event occurred. If the policy ends and claims are filed later for incidents that happened during the policy term, tail coverage lets those late claims be reported and defended. Occurrence policies work differently: coverage depends on when the incident happened, so there isn’t a separate tail extension needed to cover claims filed after the policy ends. Auto liability is typically treated as a form of liability coverage and follows the same principle—tail is specifically associated with claims-made forms. Non-renewal describes ending a policy, not the reporting window of a claims-made form, so it isn’t the form that tail coverage extends.

Tail coverage is an extended reporting period for claims under a claims-made liability policy. In a claims-made policy, coverage is triggered when a claim is made, not when the event occurred. If the policy ends and claims are filed later for incidents that happened during the policy term, tail coverage lets those late claims be reported and defended.

Occurrence policies work differently: coverage depends on when the incident happened, so there isn’t a separate tail extension needed to cover claims filed after the policy ends. Auto liability is typically treated as a form of liability coverage and follows the same principle—tail is specifically associated with claims-made forms. Non-renewal describes ending a policy, not the reporting window of a claims-made form, so it isn’t the form that tail coverage extends.