What Companies Should Know About Long-Tail Insurance Claims

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In some cases, the injury from being exposed to a harm does not occur until years later. These losses do not occur all at once; instead, they happen over time. The dilemma is that the insurance policy covering these losses may have expired, and the premiums were already paid by the time the damage is realized. At that point, there may be a new insurance carrier that had not been paid premiums during the time the harm occurred. Long-tail insurance claims present complex coverage issues both for insurance companies that may be responsible for paying claims concerning a high amount of damages and the insureds who may be legally liable for causing those damages.