I’m closing a small engineering business that I operated for 4 years and I want to be on the safe side and get tail coverage. The statute of limitations is 8 years in my state. My insurance carrier says I will need to renew my policy for each year for 7 years and then get a 3 year tail policy to account for a 2 year additional reporting term that the state gives. I think it is ridiculous that I’d need to renew my policy and pay the same premium I am paying now operating my business when I will not be operating it moving forward and will not expose them to new liabilities. I thought I could pay for tail coverage for the entire term and I don’t want to renew as if I’m still in business. The cost is quite hefty. Does this sound right? Does anyone know much about tail versus run off coverage? Thanks
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