Do you have to buy tail coverage from your current carrier or is there another option?
The answer may come as a surprise to you, but there are other tail options out there!
For many years, the only real option available was to buy tail from your current carrier.
The good news is that there are now a variety of carriers who can offer stand-alone tail coverage. This allows you to get quotes with other carriers who may be able to offer coverage cheaper or better than your current carrier. However, not all tail coverage is created equal, so below are a few things to watch for when you look at tail options:
• Is the tail offer for the same period of time or a longer period of time than your current carrier offers? If so, great! You typically do not want to choose an option offering a shorter period of time. The length of the extension is very important and should be closely reviewed when quoting. Unlimited reporting is the desired length if possible.
• Does the tail offer have as much coverage or more coverage than your current policy? If so, great! If not, think about the defense costs and consent to settle, exclusions, etc., when making a decision.
• Does the tail offer cover all of your procedures and practice back to your retroactive date? This is particularly important if you have changed or amended your specialty and exposure level anytime between the retroactive date and cancellation date.