What is the tail?
The tail is actually called an Extended Reporting Period (or ERP, for short). The tail gets its name because it becomes active after your policy has terminated (that is, you only purchase the tail endorsement when you terminate a claims-made policy). The “tail” endorsement allows you to report claims that come in after the policy is terminated for covered incidents that occurred while you were insured. For example: You buy a claims-made policy in 2006. You terminate the policy in 2009 and buy the tail. The tail allows you to report claims that are brought against you after you drop the policy, as long as the incident occurred while you were insured from 2006 to 2009.
