Mortgage Brokers' Tail-Coverage Secrets Brokers Need Now

How Tail Coverage Works

Tail coverage is typically purchased as an endorsement to an existing errors and omissions (E&O) insurance policy. It allows the insured to extend the reporting period for claims, often for a specified number of years. The cost of tail coverage can vary based on factors such as the duration of coverage and the broker’s claims history. Generally, the premium for tail coverage is a one-time fee, calculated as a percentage of the last annual premium paid for the E&O policy.