This coverage is needed when a policy terminates and there is no renewal or replacement to provide coverage for claims prior to the termination of the policy (i.e., when a firm dissolves with no successor to insure prior acts). Tail Coverage Options are provided by an Extended Reporting Period Endorsement issued at policy termination, which gives additional time (usually 12, 24, or 36 months after policy termination) to report claims arising from professional services rendered prior to termination.

Discovering Your Tail Coverage Options

The importance of architect and engineers insurance should never be underestimated. As an architect or engineer, you are expected to do work of outstanding quality and to have the best training and insight in your area of specialization. You are held to very high standards. Professional liability insurance, also known as Errors & Omissions insurance can cover you in the event of a claim arising out of your services. This includes negligence, acts and the failure to act. Along with this, you should consider your Tail Coverage Options.

E&O Insurance Coverage Architect

Professional liability covers you against any claims that arise because of your negligence or acts that result in damage or injury to your client or property that belongs to him or her.

E&O insurance provides funds for your defense and if you are found legally to be at fault, damages will be paid to the client, up to the limits of the policy. Some of these policies have sizable deductibles.

Engineers Insurance Coverage Broker

Tail coverage or extended reporting coverage (ERP) is a feature of an Errors & Omissions policy. It allows you make claims even after the policy has expired. This does not extend the period of the policy, but rather allowing more time for the professional to report a claim or incident to the insurer for services provided after the date on which the policy expired.

In many cases, this option is only available in the event that the insurer cancels the policy. Without professional liability insurance, a design professional would have to pay out the fees for legal defense and damages out of their own pocket.

Engineers Insurance

Get a thorough understanding of your Tail Coverage Options and take out a policy that has a bilateral tail. This will cover you whether you or the insurer cancels the policy, in cases other than default. This is an important feature for professionals who buy or sell a firm, wind down the operation or retire.