How long does the supplemental tail coverage extend the claims-made CGL policy?

Supplemental tail coverage is a critical aspect of claims-made policies, such as the Commercial General Liability (CGL) policy. When a claims-made policy is in effect, it only covers claims that are made during the policy period. However, the supplemental tail coverage allows claims that arise from incidents occurring during the coverage period to be reported after the policy has expired.

The inclusion of supplemental tail coverage offers an indefinite extension for reporting claims, which is particularly beneficial for the insured. Since the insured might not be immediately aware of a claim or incident, this provision helps ensure that they remain protected even after their policy has ended. It effectively allows coverage for claims that are reported at any time in the future for incidents that occurred while the coverage was active, thereby providing peace of mind to policyholders that they won’t be left vulnerable to late-emerging claims.

This indefinite extension is a key feature that distinguishes supplemental tail coverage and highlights its importance in risk management for businesses that could face long-tail liabilities.