While business insurance and other liability policies are crucial to professionals, what do you do when that insurance lapses and you face a lawsuit from something that happened prior? The answer lies in tail coverage.
What Is Tail Coverage?
Tail coverage is an add-on to your insurance. The point of a tail policy is to provide you with the means to file a claim against your policy even after it is canceled. Now, this does not mean that it includes claims that occur when you are uninsured. Instead, this policy tends to include claims that refer to an event that happened while you had insurance.
Who Needs Tail Coverage?
There are a number of industries where tail coverage is crucial. Doctors, financial advisors, lawyers and others may require tail coverage. Any industry where lawsuits are a risk is an industry that needs tail coverage. An example of necessity would be a doctor who has a claim filed against him or her months after a procedure was complete and shortly after he or she entered retirement. If the doctor performed the procedure in question while insured, then he or she can still use that insurance coverage.
According to the experts at Axis Insurance Services, tail coverage helps address the unique and complex needs that some businesses have. Without tail coverage, you could pay out of pocket when you are without insurance.