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Tail Coverage

   Also found in: Medical 0.01 sec.
Tail Coverage
A form of insurance in which the insurer will pay claims on events occurring during the policy period even if they are filed after the insurance has lapsed. For example, if an employee falls off a ladder in June and the employer allows the employee's workers compensation insurance to expire in July, tail coverage would pay the claim even if the employee does not file until August.


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In other words, tail coverage extends the life of the claim policy and makes it current.
When an organization goes out of business, it should always buy the tail coverage so when the coverage stops, the policy covers the officers and directors for a period of time.
Absent the two physicians entering retirement where the tail coverage premium would be waived, the tail coverage expense to remain in practice was quite large.
 
 
 
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