Business insurance tail coverage only applies to claims-based policies and doesn't include occurrence-based policies. Claims-based policies include professional liability, errors and omissions, and other coverage for litigation costs. Tail coverage is particularly helpful when a business is going through some type of change. It provides a bit of financial relief for unforeseen events. Occurrence-based policies, however, cover events that occur during the policy period even if the policy is discontinued. So if several years go by before you learn of an injury that occurred during the policy period, you can still file a claim. It doesn't matter if you have replaced your insurer or not; you can still get paid for losses that occurred in the period. Tail coverage can be found in various types of business plans such as coverage for data breaches, management liability insurance, and professional liability insurance. Tail coverage can last up to a year or longer.