What additional feature does the CGL supplemental tail provide compared to the basic tail?

The supplemental tail feature of a Commercial General Liability (CGL) policy enhances the basic tail coverage by including retroactive coverage for past incidents indefinitely. This is particularly significant because it extends the period in which claims can be made for incidents that occurred during the policy period, even if the policy has since been canceled or not renewed.

While basic tail coverage provides some protection against future claims made after the policy period ends, it typically does not cover incidents that happened before the policy's effective date. The supplemental tail bridges this gap, ensuring that insured parties can claim for past events that may not have been reported during the active policy period.

This retroactive aspect is valuable since it gives businesses peace of mind, knowing that they have coverage for incidents that occurred while the policy was in force, regardless of when claims are actually filed. This added protection can be crucial for businesses, as legal claims may arise long after the coverage period has ended, especially in fields where incidents can have long developmental timelines.

The other answers either misrepresent the nature of the supplemental tail or focus on aspects not relevant to its core purpose, such as infinite policy limits or claims for only active incidents.