phrase · also: extended reporting period, ERP
tail coverage
In plain English
Extended reporting period after a claims-made policy ends, so claims for old work can still be filed against it.
Critical when you retire, sell the business, or stop buying claims-made insurance. Without tail, claims that come in the year after you stop can be totally uncovered. Often costs 100-300% of the last annual premium for 1-3 years of tail.
What it covers
Claims first made and reported during the extended reporting period (typically 1, 3, 5, or unlimited years after policy expiration), for acts that occurred during the policy period.
What it does not cover
It does NOT cover new acts after the policy ends — only claims for acts that occurred during the original policy.
Where it trips people up
The right to purchase tail is usually time-limited — often 30-60 days after policy expiration. Miss that window and tail may not be available at any price.
The technical version
An extended reporting period under a claims-made policy permitting claims to be reported for a specified period after policy expiration, for acts occurring during the original policy term.