As a business owner, extended reporting period (ERP) insurance may be a good fit if you’d like to continue coverage after a policy has expired. An ERP allows you to file claims, even if your policy has expired. Also known as tail coverage, ERP insurance can keep you protected in someone sues your policy has lapsed.
Benefits of ERP Coverage
The experts at Axis Insurance Services state that, “a claims-made policy only covers claims that are made, and in most cases, reported during the policy period.” If someone files a lawsuit against you for an event that took place when your claims-made policy was active, an ERP will cover you even if you have already canceled the policy. Here are some instances where ERP coverage could be beneficial for your business:
- You’re switching your current occurrence policy. An ERP will continue to cover your business in the same manner that your previous policy did. If you have a gap in coverage without an ERP, you will not be covered for any incident that occurs or is filed during that gap.
- You’re planning on retiring. An ERP will allow you to cancel your existing insurance while maintaining coverage on your previous working activities.
ERP insurance can help protect your business when you are in times of transition. They can help give you peace of mind by knowing that you are covered while allowing you to focus on more important aspects of your business.