Malpractice Tail

What is malpractice tail?

Malpractice tail coverage, also called an extended reporting period, provides coverage for claims made after a claims-made professional liability policy ends. Without tail coverage, work performed during the policy period would be uninsured if a claim arises after the policy terminates. Tail coverage bridges this gap, ensuring you remain protected for past work even after changing insurers or retiring.

When tail coverage matters

Tail coverage becomes critical when leaving a firm, retiring, closing your practice, or switching to an occurrence-based policy. Claims-made policies only cover claims made during the policy period. If you stop coverage and a client later sues over past work, you have no insurance unless you purchased tail. The tail period may last several years or be unlimited, with pricing varying accordingly.

Cost and planning considerations

Tail coverage typically costs 100% to 300% of the final annual premium, paid as a lump sum. Some policies include free or discounted tail for retirement or death. Factor tail costs into retirement planning. Successor firms may agree to provide continuing coverage through their policy. Discuss options with your insurance broker well before any transition. Gaps in coverage expose your personal assets to claims.