ABSTRACT
Claims from liability and workers compensation policies may not arise for many years. These incurred but not reported losses are referred to as the “tail” of liability policies or “tail liability.”
For example, an OB/GYN delivers a child in 1990. In 2002 the child is diagnosed with a mental defect that can be traced to the method of delivery at birth. The loss took place in 1990 but is not reported until 2002. (See Claims-Made Liability; Incurred But Not Reported; Statute of Limitations).
