What does "tail coverage" provide in health insurance?

Tail coverage is a specific type of insurance protection that is designed to provide coverage for claims arising after a policy has ended, particularly in situations where the incident that led to the claim occurred during the term of the policy. This type of coverage is particularly important in the health insurance context, as it protects policyholders from potential liabilities that may emerge after they have ceased coverage under a particular policy.

For instance, when a healthcare provider or practitioner has a claims-made policy, they are provided coverage only for claims that are reported while the policy is in effect. Once the policy is terminated, any claims that arise from incidents that happened during the policy period but are reported afterward would not be covered unless tail coverage is in place. This ensures that the insured is not left without any protection against claims that may surface long after they thought their liability had ended.

In contrast, the other options do not accurately reflect what tail coverage provides. Coverage for health services within a specific policy term refers to standard policy provisions during the active term of an insurance policy. Insurance for claims made before the policy starts does not relate to tail coverage, as tail coverage specifically concerns claims made after the policy ends. Additional benefits for long-term care insurance also do not pertain to tail coverage, as they