A long-tail liability is a type of liability that carries a long settlement period. Long-tail liabilities are likely to result in high incurred but not reported (IBNR) claims, because it may take a long period of time for the claims to be settled.
- A long-tail liability is a type of liability that carries a long settlement period.
- Liability insurance claims often involve large sums of money and can result in a settlement as well as a lengthy court case.
- Examples of long-tail liabilities include medical malpractice, employment discrimination, and cases of child abuse.