Long-tail liability

{
  "id": "MLC-T-INS-002055",
  "term": "Long-tail liability",
  "field": "Insurance and risk management",
  "definition": "A type of insurance liability where the occurrence of the loss event and the reporting of the claim, or the full extent of damages, may not be known for many years after the policy period. Examples include product liability, environmental pollution, and professional malpractice claims. These liabilities present challenges for insurers in reserving and pricing due to the extended period of uncertainty.",
  "url": "https://mlchart.com/terminology/insurance/long-tail-liability/"
}