An extended reporting period gives the insured extra time to report claims under a claims-made liability policy after the policy ends. In plain language, it is tail protection for reporting, not an extension of coverage for new wrongful acts.
How it works
Under a claims-made form, the claim usually must be made and reported during the policy period. An extended reporting period changes the reporting deadline for qualifying claims involving acts that already took place during the covered time frame.
It does not usually cover acts that happen after the policy ends. Instead, it preserves the ability to report later-discovered claims tied to earlier conduct, subject to:
- the policy’s retroactive date
- whether the act occurred before termination
- the type and length of the ERP
- any conditions for purchasing supplemental tail coverage
Why it matters
This provision is critical for professional liability, D&O, EPLI, and other long-tail claims-made exposures. A business that changes carriers, closes operations, or stops buying the policy can face uninsured claims if it does not have an ERP when old acts surface later.
Practical example
A consulting firm cancels its claims-made E&O policy when it is acquired. Six months later, a client alleges negligence from work performed during the former policy period. The claim may still be covered if the firm secured an extended reporting period and the act falls within the policy’s covered time frame.