What does “retroactive date” and “tail coverage” signify in an E&O policy?
There are some additional terms that professionals should pay attention to, however, as they can affect what claims are eligible.
The “retroactive date” is normally the earliest date an incident can have occurred and still be covered by the policy, even if a claim is filed during the eligible period.
“Tail coverage” normally extends the time to file a claim beyond a policy’s period, which can be helpful for covering mistakes that were made during the policy period but not known at the time.
How much do professionals pay for E&O coverage?
The cost of E&O coverage varies, being affected by a professional’s industry, scope of services, experience, past claims history, and other factors. In general, however, this insurance can be quite affordable.
An independent agent can check quotes from several insurance companies, so professionals know exactly how much each company would charge them for coverage.