Tail Coverage Calculator

Flexible inputs model extended reporting coverage after claims. Adjust limits, specialty risk, and claim record. Get an instant estimate, then download your results easily.

Calculator Inputs

3 columns on large screens, 2 on smaller, 1 on mobile.
Finance · Tail / ERP Estimator
Use the last full-year premium for your claims-made policy.
Longer terms usually cost more.
Higher-risk specialties can increase ERP pricing.
Include closed and open claims.
Severity affects underwriting appetite and pricing.
Used as a proxy for experience.
Custom uses per-claim and aggregate inputs.
Typical range: 500,000 to 2,000,000.
Typical range: 1,000,000 to 6,000,000.
Gap in prior-acts can add surcharge.
Optional adjustment for local cost differences.
One-time policy processing or filing fee.
Discount for tenure with carrier or program.
Professional group or affinity discount.
Shows your estimated out-of-pocket share.
Finance fee is an estimate for comparisons.
Common: 4, 6, or 12 payments.

Graph

The bar chart compares term options using the same modifiers. The donut chart shows how fees and discounts affect the estimate.

Example Data Table

Scenario Expiring Premium Term Risk Claims Limits Estimated Tail Cost
Conservative $2,500 2 years Standard 0 / None 1M/3M $3,750
Higher Risk $3,800 Unlimited High 1 / Moderate Higher $18,050
Claims Heavy $4,200 5 years Standard 3 / Major Standard $26,750
Custom Limits $3,100 3 years Low 1 / Minor 2M/4M $9,250
Examples are illustrative for planning. Enter your own inputs for a tailored estimate.

Formula Used

Core estimate
Tail Premium = Expiring Premium × Tail Term Factor × Specialty Factor × Claims Factor × Experience Factor × Retro Gap Factor × Limits Factor
Total Cost = (Tail Premium × (1 + Surcharge) × Discount Multiplier) + Admin Fee + Finance Fee
Tail term factors are typical planning multipliers (for example, Unlimited ≈ 3.0×). Discounts are applied multiplicatively to avoid unrealistic stacking.

How to Use This Calculator

  1. Start with your expiring annual premium from the declarations page.
  2. Choose a tail term that matches your risk tolerance and needs.
  3. Set specialty risk and claim history to reflect underwriting reality.
  4. Pick your limits mode; use custom limits when needed.
  5. Add discounts, employer contribution, fees, and payment plan details.
  6. Click calculate, review charts, then export CSV or PDF.

Why tail coverage matters

Tail coverage, also called an extended reporting period, keeps your ability to report claims after a claims-made policy ends. It does not expand what happened; it extends when you can report what already occurred during the active policy period. This matters when you retire, change employers, switch carriers, or move to an occurrence form. The calculator estimates a planning cost so you can budget for the transition. Many programs offer 1x to 3x pricing, with purchase required within 30–60 days of termination in some cases.

How tail pricing is commonly structured

Insurers often price tail as a multiple of the expiring annual premium, then adjust for risk and experience. In this tool, the tail term factor represents the baseline multiple by term length, while specialty risk and procedure mix reflect expected claim frequency and complexity. Claim count and severity add load, and claims-free years can provide a modest credit when history is clean.

Limits, defense, and contract mechanics

Policy limits influence expected loss and defense spending. Higher limits can increase the expected size of potential payments, so the limits factor scales the estimate. Defense inside or outside limits changes how defense costs interact with the limit, which can affect pricing and exposure perception. Consent-to-settle provisions and carrier type are included as underwriting proxies that can nudge the estimate up or down.

Operational exposure and controllable credits

Operational size can shift exposure even with the same professional scope. Revenue, locations, and staff counts are used as simplified indicators of volume and administrative complexity. Risk management credits capture training, documentation, audits, and protocols that reduce incident rates. Surcharges, regulatory fees, taxes, and finance charges are shown separately so you can see which elements are controllable versus structural.

Budgeting, negotiating, and documenting assumptions

Use the charts to compare term options, understand the cost build, and test sensitivity. If you have an actual quote multiplier, enter it as an override to align the model with your market. Export CSV or PDF to share assumptions with brokers, employers, or finance teams. Treat results as directional and validate with carrier forms, retro dates, and specific program rules.

FAQs

1) What is tail coverage in a claims-made policy?

It is an extended reporting period that lets you report claims after the policy ends for events that happened during the active policy period.

2) When should I purchase tail coverage?

Usually when you cancel a claims-made policy, retire, change jobs, switch carriers, or convert to occurrence coverage. Many carriers require purchase soon after termination.

3) Does tail coverage insure new incidents after termination?

No. It only allows late reporting of incidents that occurred before the policy ended and within the covered retro date and terms.

4) Why do claim history and specialty risk matter?

Underwriters expect different claim frequency and severity by specialty. Prior claims can increase expected loss and defense costs, raising the tail estimate.

5) How does employer contribution affect my results?

Enter the employer pays percentage to see your estimated out-of-pocket share. It does not change total pricing, only the split between employer and you.

6) What is the tail factor override used for?

If a broker or carrier provides an ERP multiplier, enter it to replace the default term factor. This aligns the estimate with your market quote.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.