With so many types of insurance on the market, it can be difficult to know what type of insurance you need. Whether you are looking for insurance for yourself, your home, your business, or anything else, it’s important to know what’s right for your needs. This article explains tail coverage insurance for the layman.
What is Tail Coverage Insurance?
Tail coverage insurance is a type of coverage that allows claims to be filed after the original insurance expires or is canceled, so long as you still had insurance when the incident/accident occurred. For example, if a person has a car accident on Monday, their insurance expires on Wednesday, and they file a claim on Friday, then having tail coverage insurance would allow the claim to go through.
According to Axis Insurance Services, tail coverage insurance may also be referred to as an extended reporting period endorsement, or an ERP. In most cases, ERPs are already available to customers who have a claims-made insurance policy. However, a Standalone ERP (Tail Policy) may need to be purchased separately. If customers are unsure of what policy they have, it’s best to ask their insurance broker.
Overall, tail coverage insurance is a great thing to look into if you need to file a claim but have recently lost insurance. Purchasing this type of insurance is also a great idea for business owners who know their business will be closing soon. Ask your insurance broker about tail coverage insurance for more information.