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📋 '''Extended reporting period''' is a provision found in [[Definition:Claims-made policy | claims-made policies]] that allows the [[Definition:Insured | insured]] to report claims for a specified window of time after the policy has expired or been cancelled, even though no new coverage is in effect. Unlike [[Definition:Occurrence-based policy | occurrence-based policies]], which cover events that happen during the policy term regardless of when a claim is filed, claims-made forms require that both the incident and the report fall within the active policy period — creating a potential gap when coverage ends. The extended reporting period, sometimes called a "tail" or "tail coverage," bridges that gap by preserving the right to report incidents that occurred during the policy period but were not yet known or reported before expiration.

⚙️ When a claims-made policy terminates — whether through non-renewal, cancellation, or a switch to a different [[Definition:Insurance carrier | carrier]] — the insured typically has access to a basic extended reporting period at no additional charge, often lasting 30 to 60 days. For longer protection, carriers offer a supplemental extended reporting period that can stretch from one year to an indefinite duration, purchased for an additional [[Definition:Premium | premium]] that is usually calculated as a percentage of the expiring policy's premium. The trigger is straightforward: a [[Definition:Claim | claim]] must arise from a [[Definition:Wrongful act | wrongful act]] or event that took place during the original policy period, and the insured must report it within the extended window. No new acts are covered — only late-surfacing reports of previously covered conduct.

💡 For professionals in lines like [[Definition:Directors and officers liability insurance (D&O) | directors and officers liability]], [[Definition:Errors and omissions insurance (E&O) | errors and omissions]], and [[Definition:Cyber insurance | cyber insurance]], understanding the mechanics of extended reporting periods is essential to avoiding uninsured exposures during policy transitions. A lapse in tail coverage can leave an organization vulnerable to claims that stem from past decisions or incidents — precisely the kind of long-tail risk these policies are designed to address. [[Definition:Insurance broker | Brokers]] routinely advise clients to negotiate favorable extended reporting terms at inception, because the cost and availability of tail coverage after a policy ends can vary dramatically depending on [[Definition:Loss history | loss history]] and market conditions.

'''Related concepts'''
{{Div col|colwidth=20em}}
* [[Definition:Claims-made policy]]
* [[Definition:Occurrence-based policy]]
* [[Definition:Tail coverage]]
* [[Definition:Retroactive date]]
* [[Definition:Professional liability insurance]]
* [[Definition:Prior acts coverage]]
{{Div col end}}

Definition:Extended reporting period - Revision history

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