What does tail coverage in professional liability insurance primarily address?

Tail coverage in professional liability insurance serves a critical function by extending coverage for claims related to work that was completed prior to the policy’s expiration but for which claims may arise afterward. Essentially, it protects professionals against allegations stemming from past services even after they have stopped practicing or their policy has ended. This is particularly important in professions such as law and medicine, where claims can emerge long after services have been provided.

The correct option highlights the focus of tail coverage on claims that may not have yet been filed but arise from past work. By obtaining tail coverage, professionals ensure that they are protected against potential lawsuits for incidents that occurred during the period of coverage but are reported after the coverage ends.

Understanding tail coverage is vital for professionals in managing their risk and ensuring that they are not left vulnerable to claims related to their previous work, which may not surface until many years later.