Tail coverage isn’t the most common form of insurance, but for companies that need it, its coverage is indispensable. If you’ve never dealt with it before, it’s also known as insurance with an extended reporting period. You can get it as a rider on a full liability policy with some providers, although it is often more cost-efficient to purchase a separate ERP insurance policy when your risk management strategy indicates you could use it. Why? Simple, it’s because an extended reporting window isn’t always needed. For example, if you’re carrying a policy that will renew over and over, you don’t have to worry about reporting a covered loss before it expires, since you’re going to continue to carry that coverage.
When Is an ERP Policy Useful?
Tail policies are useful when you’re changing insurance or when you are managing insurance that covers actions that could come to light years later. For example, E&O coverage is a good form of insurance to pair with an ERP policy because you might discover the effects of an employee’s error years after it happens when that worker is no longer with the company, but the effects have had undeniable consequences for the business and for customers alike. For similar reasons, cyber insurance policies are also good ones to back up with tail coverage. If you want to learn more, talk to a professional with experience in this form of insurance about your business and its coverage needs.