Professional Liability Insurance
How Much Does Tail Coverage Cost?
Tail coverage typically costs 150–200% of your final annual premium as a one-time lump-sum payment. A $3,000 annual policy generates approximately $4,500–$6,000 in tail cost.
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How much does tail coverage cost for professional liability?
Tail coverage (Extended Reporting Period) is priced as a multiple of your expiring annual premium. The length of the tail affects cost: a 1-year tail is cheapest; a 5-year tail can run 200–300% of annual premium.
Example: if your final annual PL premium is $3,500 and you purchase a 3-year tail at 175%, you pay $6,125 one time for 3 years of continued claim reporting ability.
Budget for tail coverage before you cancel your policy. The option to purchase tail usually expires when the policy lapses — you can’t go back and buy it later. Contact your agent before cancellation to get a tail quote.
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