Extended Reporting Period

An extended reporting period (ERP), commonly called tail coverage, extends the window for reporting claims after a claims-made policy has expired or been cancelled. Without an ERP, any claim reported after the policy period ends would be denied, even if the incident occurred during the coverage period. Most claims-made policies include a basic or mini-tail of 30 to 60 days at no additional cost, while a supplemental or full ERP can extend reporting rights for one to six years or even indefinitely, for an additional premium. The supplemental ERP typically costs between 100% and 200% of the expiring annual premium. In COI compliance, tracking whether a vendor has purchased an ERP is critical when a claims-made policy is not renewed. Compliance platforms should flag claims-made policy expirations and verify that either a renewal or an ERP is in place to prevent coverage gaps for work already performed.