Is Tail coverage same as run-off cover?

Answer 1

Tail coverage and run-off cover are often used interchangeably, but they can have slightly different implications depending on the context. Tail coverage generally refers to an extension of liability insurance that provides protection for claims that arise after a policy has expired, particularly for claims made after the insured ceases operations. Run-off cover, on the other hand, specifically pertains to insurance for a business that has ceased operations altogether, covering claims related to past activities. Both serve to protect against future claims after a policy period has ended, but the focus of run-off cover is typically on businesses that are no longer active.