Tail coverage refers to purchasing coverage to cover past incidents after changing jobs. Which option correctly classifies this concept?

• A. Occurrence
• B. Claims-made
• C. Tail coverage
• D. Extended coverage

Answer: (C)

In liability insurance, this scenario hinges on how claims are triggered. When you’re on a claims-made policy, coverage depends on the claim being filed while the policy is active. If you leave a job, you’d worry about claims for events that happened during your coverage period but are filed later. Tail coverage is exactly that: an extension that bridges the gap after you move to a new job, so claims made after leaving can still be defended for incidents that occurred while you were insured.

This isn’t about an occurrence policy, where coverage is tied to when the incident happened regardless of when a claim is filed. It’s also not just a generic “extended coverage” term; the standard way to describe this post-employment protection under a claims-made policy is tail coverage.