There are several industries where career liabilities follow a person long after he or she has left their job. Lawyers and healthcare professionals are two individuals who may have these concerns. Though these individuals often carry professional liability insurance while actively working in their fields, a level of coverage should be maintained after changing jobs or retiring. A tail coverage insurance policy can provide this coverage.
The Lasting Nature of Liabilities
Insurance policies provide support for claims that arise during a specified period of time, usually the policy contract. However, errors and omissions, acts of negligence, or malpractice concerns aren’t always reported when a policy is current. Medical concerns or legal situations may come to light after the termination of a professional liability policy, potentially making the individual personally responsible for resolution.
The Extension of Protection
Because most professional liability policies follow a claims-made contract, any reports must be filed during the active period of the policy to be covered. Tail coverage extends the reporting period by a specified amount of time, with many extensions covering several years past the termination of the original policy. The policy makes specific provisions for the extended reporting period.
As a professional, you should think of your liabilities both now and later. The right insurance can provide protection whether or not you are actively working in the industry, which is a financial relief if a claim does arrive after you’ve left your practice.