Also known as: Tail Coverage · ERP · Tail Policy
A window after a claims-made policy ends to report claims for events that occurred during the policy.
An ERP (commonly called "tail coverage") lets you report claims after your claims-made policy expires or is cancelled, for events that happened while the policy was active. It's essential when you stop carrying a claims-made policy.
You need tail coverage whenever you cancel or non-renew a claims-made policy without replacing it with a new policy that has full prior acts coverage. Common scenarios: company shutdown, acquisition (the acquirer's policy may not cover your prior acts), or switching to a carrier that won't match your retro date.
Tail coverage cost scales with the length of the reporting period. A defined one-to-three-year tail commonly runs 100–200% of your last annual premium, while a fully unlimited (indefinite) reporting period typically costs more—often up to ~300%, and higher for riskier lines. Some policies include a free "mini-tail" of 30–60 days. Exact pricing varies by carrier and coverage line.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.