What is an extended reporting period?
Short answer
An extended reporting period is extra time after a claims-made policy ends in which you can still report claims for work performed while it was in force. It is the formal name for tail coverage, and it extends the reporting window only, not the policy period, the limits, or the scope of coverage.
Why an ERP exists
A claims-made policy only pays claims reported during its policy period. Work you finished last year can generate a claim years later, and without an extended reporting period there would be no policy left to report it to. The ERP keeps that reporting window open after the policy ends.
Extended reporting period vs. prior acts
- ERP: extra time to report claims after the old policy ends
- Prior acts: the new policy reaches back to cover earlier work
- ERP protects work under the expiring policy; prior acts protects work under the replacement policy
- Carriers usually do not offer both, so ask which structure your transition uses
What an ERP does not change
The endorsement does not extend the policy period, increase limits, add coverage that was not in the original policy, or cover work performed after the policy ended. Claims still have to fall within the retroactive date and the original terms, and defense costs still erode the limit if the form works that way.
Free vs. purchased ERP
- Free unlimited ERP for death, disability, or retirement after several years with the carrier
- Purchased ERP, often priced as a percentage of expiring annual premium
- Short reporting windows, such as 60 or 90 days, sometimes included at no charge
- Election deadlines, usually a set number of days after the policy ends
How to decide
If your replacement policy carries prior acts reaching back to your old retroactive date, an ERP is usually unnecessary. If no carrier will reach back, or you are closing or selling the practice, price the ERP before the policy expires, because the option normally disappears after the election window closes.
Common questions
- Is an extended reporting period the same as tail coverage?
- Yes. Extended reporting period, ERP, tail coverage, and tail policy all describe the same endorsement: extra time after a claims-made policy ends to report claims for earlier work.
- How long does an extended reporting period last?
- It depends on the endorsement. Some run for a fixed period such as one, three, or five years, and some are unlimited, especially the free versions granted for retirement or death. The declarations page states the term.
- Can I buy an ERP after my policy expires?
- Usually not. Most carriers require election within a short window after the policy ends, often 30 to 60 days. After that the option typically lapses, so decide before expiration.
- Does an ERP increase my limits?
- No. It only extends the time to report. The limits, deductible, retroactive date, and exclusions remain exactly as they were on the expiring policy.
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Professional Resource Insurance Agency, LLC. CA License #0G81238. Definitions are general information, not coverage advice for a specific policy.