installment tail coverage
Installment tail coverage is the purchase of an extended reporting period (ERP) for a claims-made liability policy in 1-year increments.
Additional Information
Since the premium for an ERP is fully earned at inception, this alternative has developed in some markets as a means of eliminating the credit risk that would result if an insured were allowed to purchase the usual 3-year or unlimited tail coverage endorsement by making installment payments.
