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Should I keep E and O? A change in my circumstance

Jan 21, 2018

  1. somarco
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    somarco That Medicare Expert Guy

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    Tail coverage isn't what you think . . .

    Mostly used in P&C and pertains to runout claims. Those incurred while the policy was in effect but not submitted until after the policy terminates.

    Health insurance is generally considered short tail coverage since claims submitted more than 6 months after the end of the policy (generally) are not eligible for reimbursement.

    WC is long tail. Claims are tied to the individual and the incident that created the claim. Joe is injured on the job in 2010 but is still receiving treatment and/or payout 7+ years later. Those claims are charged against the 2010 policy.
     
    somarco, Jan 25, 2018
    #11
  2. VolAgent
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    VolAgent Guru

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    Remember, E&O is a Casualty policy form. Most carriers do offer tail coverage for it. The question is for how long and at what price?

    E&Oforless.com, which use to be a forum sponsor, offers it. But basically you are just paying for that period of time in advance, so no real benefit other than you can forget about it. Also only offered for 2 or 3 years, so doesn't go out super long either.
     
  3. somarco
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    somarco That Medicare Expert Guy

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    Thanks Kirby, but I was addressing Tyler's question about "tail". And yes, E&O is casualty coverage.

    Frankly I have never researched E&O to see if they are an occurrence policy or claims made. But I do believe the bulk of them are claims made however many of them will pay for claims incurred prior to the effective date if you have had continuous coverage without a break.
     
    somarco, Jan 25, 2018
    #13
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