In a claims-made policy, tail coverage refers to the coverage for claims reported after the policy period.

• A. Coverage during policy period
• B. Extended coverage for claims reported during policy period
• C. Coverage for property damage
• D. Extended coverage for claims reported after the policy period

Answer: (D)

Tail coverage in a claims-made policy is the Extended Reporting Period that protects you for claims that are reported after the policy ends. In a claims-made structure, the policy responds to claims made during the period, not just events that happened earlier, so if a claim is filed after the policy ends, you’d need tail coverage to extend that reporting window. This means you’re covered for incidents that occurred during the policy period but are reported later, once the policy has expired. The other ideas don’t fit: coverage during the policy period is the basic active coverage, tail coverage specifically extends reporting after termination, and coverage for property damage is a different coverage focus not tied to the timing of reporting. Therefore, extended coverage for claims reported after the policy period best describes tail coverage.