Understanding Tail Coverage – and Why It Matters for Every Lawyer
Understanding Tail Coverage – and Why It Matters for Every Lawyer
As the legal landscape continues to evolve, professional liability protection remains a critical component of a healthy law practice. One coverage feature that often goes overlooked—yet can have substantial consequences—is tail coverage, also known as an Extended Reporting Period (ERP) endorsement. Whether you are retiring, closing a firm, switching carriers, or transitioning to an in-house role, understanding tail coverage is essential to maintaining continuous protection.
What Is Tail Coverage?
Most legal malpractice policies are written on a claims-made basis, meaning the policy must be in effect both when the alleged error occurred and when the claim is reported. If your policy ends and no new policy is in place, a gap is created—and claims arising from past work may no longer be covered. This is where tail coverage steps in.
A tail policy extends the time in which you can report a claim for work you performed while your prior policy was active. It does not create new coverage; instead, it preserves your ability to report claims based on past acts, errors, or omissions. In short: if you no longer carry active malpractice coverage, a tail protects your prior work.
Why Tail Coverage Is Critical
- Claims can arise years after representation ends. Even the most diligent lawyer can face a claim long after a matter has closed. Without tail coverage, those late-arriving claims could become entirely uninsured.
- Retirement or firm departure creates exposure. When an attorney retires, dissolves a firm, or shifts to a non-practicing role, they often stop carrying an active malpractice policy. A tail ensures their past legal services remain protected.
- Carrier changes aren’t always seamless. If you switch insurers or join a firm with different coverage terms, gaps in your retroactive date or reporting period can occur. Tail coverage can bridge those gaps.
- Peace of mind for you—and your clients. Maintaining continuous protection helps safeguard your financial security and upholds professional responsibility to former clients.
When Should You Purchase a Tail?
You should consider securing a tail policy if you are:
- Retiring or winding down your practice
- Selling or merging a firm
- Leaving private practice or taking an extended career break
- Changing insurers and unable to keep the same retroactive date
- Concerned about potential gaps in coverage related to prior work
Many carriers offer multiple tail options—such as one-year, three-year, five-year, or unlimited ERP endorsements. Selecting the right tail depends on your practice area, claims history, and long-term risk tolerance.
Tail coverage is an essential safeguard for lawyers who are transitioning in their careers or preparing to conclude their practice. It ensures that even after you step away from active representation, your past professional work remains protected. For many attorneys, purchasing a tail policy is not just a prudent decision—it’s a vital component of responsible risk management.
If you are considering retirement, changing firms, or modifying your coverage, reach out to your malpractice insurance provider to discuss the tail options available to you. A well-chosen tail policy can provide lasting peace of mind long after your final case is closed.
Questions? Contact Jared Burke for more information.