Extended Reporting Period (tail) Coverage
"Tail" or "extended reporting" endorsements cover events that occur while the policy is in force but are reported to the carrier after the policy terminates. Purchasing tail coverage from the present carrier effectively converts the claims-made policy into an occurrence policy.
"Prior acts" (or "nose") coverage transfers the retro-active date for an old policy to a new insurance carrier—eliminating the need to purchase tail coverage from the last carrier. Nose coverage is usually less expensive than purchasing tail coverage from the old carrier. Tail coverage costs 2-3 times the expiring premium.
Read more about this topic: Professional Liability Insurance
Famous quotes containing the words extended, reporting and/or period:
“The civility which money will purchase, is rarely extended to those who have none.”
—Charles Dickens (1812–1870)
“I have been reporting club meetings for four years and I am tired of hearing reviews of the books I was brought up on. I am tired of amateur performances at occasions announced to be for purposes either of enjoyment or improvement. I am tired of suffering under the pretense of acquiring culture. I am tired of hearing the word “culture” used so wantonly. I am tired of essays that let no guilty author escape quotation.”
—Josephine Woodward, U.S. author. As quoted in Everyone Was Brave, ch. 3, by William L. O’Neill (1969)
“Not only do our wives need support, but our children need our deep involvement in their lives. If this period [the early years] of primitive needs and primitive caretaking passes without us, it is lost forever. We can be involved in other ways, but never again on this profoundly intimate level.”
—Augustus Y. Napier (20th century)