Extended Reporting Coverages are vitally important when companies close or are sold. Often we find companies simply don’t have the money to purchase an extended reporting endorsement (Tail Coverage) and are left to take their chances with future claims. We feel it is vitally important when closing or selling a company to plan for the purchase of extended coverage. The cost for this coverage is typically 100% of the expiring premium for a 12 month extension up to 250% for a 36 month extension. Withoutthis coverage, the policy will typically cease and no claims reported in the future will be paid by an E&O policy. This is regardless of when the incident occurred. We provide our clients with a detailed explanation of claims made coverage and make them sign off that they understand the risk.
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