INSURANCE GUIDE
Extended Reporting Period (Tail Coverage) in E&O Insurance
An extended reporting period, often called tail coverage, can provide additional time to report certain claims after a claims-made E&O policy ends. It does not usually extend the period in which new professional services are performed.
What an extended reporting period does
An extended reporting period (ERP) generally extends the time in which certain claims may be reported after a claims-made policy terminates, subject to the policy terms. It is commonly called tail coverage.
What tail coverage usually does not do
An ERP typically does not extend the period for performing new professional services. It is generally designed to address eligible claims arising from services performed before the policy ended and within the applicable coverage period.
When an ERP may be considered
Tail coverage may become important when a professional retires, closes or sells a business, changes to a policy that does not preserve prior acts, or otherwise ends claims-made coverage without continuous replacement protection.
How long does it last?
Options vary by insurer and policy. Some policies offer multiple ERP durations, while others may include limited automatic reporting provisions or special retirement options. The period, price and availability should be reviewed before coverage ends.
ERP versus prior acts coverage
Continuous replacement coverage with an appropriate retroactive date may preserve prior acts under the new policy. An ERP instead keeps a reporting window associated with the expiring policy. These are different mechanisms and should not be treated as interchangeable without reviewing the forms.
Understand prior acts coverage →
Questions to ask before a policy ends
- Is an ERP available and when must it be purchased?
- What reporting period is offered?
- Does the ERP apply to the full prior-acts period?
- Are there special retirement, death or disability provisions?
- Can the ERP be cancelled once purchased?
- Are limits shared with the expiring policy or otherwise restricted?
In this guide
What an extended reporting period does
An extended reporting period (ERP) generally extends the time in which certain claims may be reported after a claims-made policy terminates, subject to the policy terms. It is commonly called tail coverage.
What tail coverage usually does not do
An ERP typically does not extend the period for performing new professional services. It is generally designed to address eligible claims arising from services performed before the policy ended and within the applicable coverage period.
When an ERP may be considered
Tail coverage may become important when a professional retires, closes or sells a business, changes to a policy that does not preserve prior acts, or otherwise ends claims-made coverage without continuous replacement protection.
Questions about this coverage?
Talk with ECLICK about your current policy, upcoming renewal, or the coverage you are comparing.