Must Read Monday Understanding a Tail Policy

Must Read Monday Understanding a Tail Policy

What is a tail policy or extended reporting endorsement?

An Extended Reporting Endorsement “ERE”, or commonly called a “tail”, is an endorsement that is put on your last active policy to create coverage for a claim that is reported after your policy expires, so long as there was a policy in place at the time the alleged error occurred. As lawyers professional liability (LPL) policies are claims made policies, without the purchase of the ERE/tail, all coverage will cease on the day the policy ends.

When should I purchase a tail policy or extended reporting endorsement?

When a solo retires or leaves private practice or when a firm either ceases operations or dissolves.

How much does a Lawyers’ Mutual tail / extended reporting endorsement cost?

• 1 year tail: 100% of your premium recalculated at the time of cancellation
• 3 year tail: 180% of your premium recalculated at the time of cancellation
• 5 year tail: 220% of your premium recalculated at the time of cancellation
• Lifetime tail: 285% of your premium recalculated at the time of cancellation

Our provisions for tail with costs is found in the Universal Policy at Section 2.6.

For more information, contact our Underwriting Department at info@lawyersmutual