Tail Coverage Calculator

Calculate Tail Coverage

Formula

The formula to calculate Tail Coverage is:

\[ TC = EP \cdot 2 \]

Where:

Tail Coverage Definition

Tail Coverage refers to the additional insurance coverage that extends beyond the end of the policy period. It is calculated by multiplying the expiring annual premium by 2.

Example Calculation

Let's consider an example:

Using the formula to calculate Tail Coverage:

\[ TC = 1,000 \times 2 = 2,000 \, \text{\$} \]

This demonstrates that with an expiring annual premium of $1,000, the tail coverage would be $2,000.