Tail Coverage/ Extended Reporting Period (ERP)
Insureds who do not renew coverage through our program for any reason should consider obtaining tail coverage by purchasing an extended reporting period (ERP) endorsement.
Our policies are claims-made-and-reported policies, which means they apply to claims that are both made and reported during the individual policy period or any applicable ERP. Claims often arise years after a transaction occurs. What happens if a claim is made after your policy expires depends on whether an ERP is in effect. An ERP extends the reporting date of your policy so that it applies to claims made and reported after the end of the individual policy period and before the end of the ERP.
All of our policies include an automatic 90-day ERP in the event the insured licensee’s license is retired, inactivated, or allowed to expire. This allows the policy to apply to claims first made and reported up to 90 days after the effective date of the cancellation or nonrenewal, provided the subject professional services occurred after the retroactive date and before the effective date of cancellation or nonrenewal.
Optional ERP endorsements may be purchased to cause the policy to apply to claims first made and reported up to a specified number of years after the effective date of cancellation or nonrenewal, provided the subject professional services occurred after the retroactive date and before the effective date of cancellation or nonrenewal. ERP endorsements can only be purchased within 90 days after the licensee’s policy has terminated.
Common situations where ERP endorsements should be considered:
- Moving to a real estate firm where insurance is provided through a company E&O policy
- Retiring or inactivating your license
- Death (planning for the heirs of your estate)
If you are interested in an ERP endorsement, call us at 1-800-637-7319, extension 1 to request a quote and personalized ERP endorsement enrollment form.
- Sample ERP Enrollment Form for Colorado, Idaho, Iowa, Louisiana, Mississippi, North Dakota, New Mexico, Rhode Island, South Dakota and Tennessee
- Sample ERP Enrollment Form for Kentucky
- Sample ERP Enrollment Form for Nebraska