Extended Reporting Period (ERP / Tail Coverage)
Definition. An Extended Reporting Period (ERP), also called Tail Coverage, is an optional or automatic extension on a Claims-Made policy that allows claims to be reported after the policy expires — covering wrongful acts that occurred during the policy term but surfaced later.
Also known as: ERP, Tail Coverage, Discovery Period
Claims-Made policies cover claims that are both MADE and REPORTED during the policy period. When a Claims-Made policy ends — through carrier change, non-renewal, retirement, or business sale — claims for prior acts may surface afterward with no coverage.
ERP fills this gap. Common forms:
- Basic ERP: automatic 30-60 day reporting extension at no extra premium for claims arising from acts during the prior policy.
- Supplemental ERP (Tail): optional 1-year, 3-year, 5-year, or unlimited Tail purchased at termination. Premium ranges from 100-300% of the expiring annual premium depending on length.
Critical for retiring professionals (lawyers, CPAs, doctors), business sales, and any change from a Claims-Made carrier.
Example
A consultant retires and lets her Professional Liability policy lapse. Three years later, a former client sues over advice given before retirement. Without an unlimited Tail (purchased at retirement), the consultant has no coverage — the policy's automatic Basic ERP expired after 60 days.
Sources cited
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Reviewed by California-licensed Property & Casualty insurance agent
Jason Wootton (CA License #0I94454). Not insurance advice, an individual recommendation, or a solicitation in any state. Insurance regulations vary by state. For specific coverage decisions, consult a licensed insurance agent in your state.
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