Tail coverage covers claims made against an insured during the period after the original claims made policy has expired for services (for a professional) provided prior to the original policy termination date (see here). Tail coverage is critical in the sale of an operation, such as an insurance agency, and typically is required by a buyer.
There is currently an active market for Standalone Tail coverage – unlike a few years ago (see our prior post here, and note the date!). As an example, a Standalone Tail was recently placed to support the sale of a specialty insurance agency. The terms were significantly more competitive than the ERP built into the policy and were customized to the sale transaction. The complexities of a transaction and the resulting specific coverage challenges often result in Standalone Tail coverage being a better option.
Tennant Risk Services is a specialty wholesale broker and underwriting manager, and delivers expertise, markets and exemplary services to our retail insurance agent clients in the placement of professional liability insurance (E&O, D&O, EPL, Cyber). We excel at hard to place accounts, including special situations such as Standalone Tail coverage.