Certified Professional in Health Care Risk Management (CPHRM) 2025 – 400 Free Practice Questions to Pass the Exam

The purpose of a tail coverage period in a claims-made policy is to convert a claims-made policy to an occurrence policy. In a claims-made insurance policy, coverage is provided for claims made during the policy period. However, if a policyholder stops or changes their insurance coverage, they may still face claims for incidents that occurred during the time the policy was active but were not reported until after the policy terminated.

Tail coverage extends the reporting period for those incidents, allowing claims to be filed after the policy has ended. This ensures that the insured remains protected from claims related to events that occurred during the claims-made policy period, thus providing peace of mind and financial protection. This conversion to an occurrence-based framework allows the individual or organization to avoid gaps in coverage for past events, crucial in fields such as healthcare where claims may arise long after the service was rendered.