Tail coverage in claims-made policies extends which period?

Tail coverage in claims-made policies extends which period?

• A. The policy term extension
• B. The reporting period for claims arising during the period
• C. The coverage limits
• D. The deductible period

Answer: (B)

Tail coverage extends the time to report claims for incidents that occurred during the policy term, even after the policy ends. In a claims-made policy, coverage is triggered by when a claim is made, so the extended reporting period (the tail) protects the insured if a claim is reported later, for events that happened while the policy was in force. It does not lengthen the policy term, adjust the coverage limits, or change the deductible. For example, an incident that occurred in the policy period but is reported after renewal can still be covered under tail coverage.

Tail coverage extends the time to report claims for incidents that occurred during the policy term, even after the policy ends. In a claims-made policy, coverage is triggered by when a claim is made, so the extended reporting period (the tail) protects the insured if a claim is reported later, for events that happened while the policy was in force. It does not lengthen the policy term, adjust the coverage limits, or change the deductible. For example, an incident that occurred in the policy period but is reported after renewal can still be covered under tail coverage.