Extended Reporting Period Coverage
What is Extended Reporting Period Coverage and how does it work?
Extended Reporting Period Coverage, also known as tail coverage, is an important aspect of professional liability insurance. It offers protection to policyholders even after their policy has expired or been canceled. This coverage is particularly crucial for professionals such as doctors, lawyers, and accountants who face potential claims long after they have left their practice. The extended reporting period allows them to report claims that arise from incidents that occurred during the policy period, but are discovered after the policy has lapsed. For instance, a physician who retired may still need this coverage if a patient files a malpractice lawsuit years later. It is worth noting that the extended reporting period must be purchased, either at the time of policy inception or within a specified timeframe after the policy ends. The duration of this coverage can vary, with options ranging from one to ten years, depending on the specific policy and the needs of the insured. It is crucial for individuals to carefully consider their circumstances when selecting the appropriate length of extended reporting period coverage. While extended reporting period coverage may come at an additional cost, it provides reassurance and protection against potential claims that could arise in the future, even when the policy is no longer active. Professionals should consult their insurance agents or brokers to understand the terms and conditions of this coverage and ensure a comprehensive understanding of the protection it offers.
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