Business professionals must wear many hats. Not only must they work hard to meet customer or client demands, they must keep up with administrative tasks. While purchasing business liability insurance isn’t exactly exciting for most, it is necessary to protect against claims of errors and omissions. Still, not every E&O policy is created equally. By adding tail coverage to your existing policy, you may achieve the peace of mind you need to excel professionally.
Extending E&O Reporting Period
Tail coverage allows you to plan for E&O risks after the expiration of your existing policy. While the coverage does not extend the E&O coverage, it extends the claims reporting period for incidents that occurred during the original policy. Given this benefit, it isn’t hard to see why many professionals fit tail coverage cost into their operational budgets.
Preparing for a Sale
If you don’t think you need tail coverage for the normal course of your business, you may need it for a pending sale. Often, buyers request tail coverage insurance to protect their interests after closing.
While tail coverage cost varies, it is often a smart way for you to invest in your professional future. Rather than leaving your success to chance, talk with an experienced agent meeting your business liability needs.