Tail coverage in malpractice insurance: which statement is correct?

• A. It covers claims during the policy period in all circumstances
• B. It is identical to standard policy
• C. It provides coverage for claims filed after policy termination for events that occurred during the policy period
• D. It has no relevance to employment changes

Answer: (C)

Tail coverage is an extended reporting period that kicks in after a malpractice policy ends, covering claims filed after termination for incidents that happened while the policy was active. This is what makes the statement correct: you can leave a practice or switch insurers, and you might face a lawsuit years later for something that occurred during the policy period; tail coverage protects you by allowing those late-filed claims to be covered even after the policy has ended. It’s not the same as the standard policy, which covers claims made during the policy term for events that occurred in that period; tail extends protection beyond termination. This is particularly relevant during employment changes, retirements, or practice transitions, where gaps in coverage could otherwise leave you exposed. The other statements don’t fit because tail coverage isn’t automatic in all circumstances, isn’t identical to a standard policy, and is indeed relevant to employment changes.