Extended Reporting Period (ERP)
An extended reporting period (ERP) is a set window after a claims-made policy ends during which a claim can still be reported and covered as if made during the policy period, generally for events that happened before the policy ended.
Last updated October 13, 2026
How an extended reporting period works
A claims-made policy generally covers claims first made and reported while the policy is in force. Without an ERP, a claim made one day after expiration is typically not covered, even for work done during the policy period. IRMI describes the ERP as the fix: a defined period after expiration or cancellation in which claims can still be reported.
Policies usually split ERPs into two kinds:
- Basic ERP. Built into the policy in some circumstances, such as cancellation or non-renewal. Length varies by form. In the ISO claims-made general liability form, for example, the basic ERP is automatic and runs 60 days for unreported incidents, with a longer window for incidents reported within that time.
- Supplemental ERP. An optional extension you must elect and pay for, usually within a deadline after the policy ends. In that same ISO form the election window is 60 days and the premium is capped at 200% of the annual premium. Other forms set their own deadlines, durations and pricing.
An ERP does not cover wrongful acts that happen after the policy ends. It only extends the time to report claims about earlier acts. For more on winding down coverage, see tail coverage explained and how run-off and tail limits work.
When an ERP comes up
- Non-renewal or cancellation. Either the insurer or the company ends the policy.
- Switching carriers. A new policy may not cover earlier work unless it carries the same retroactive date or provides prior acts coverage.
- Acquisition or merger. A change in control often ends the existing policy's coverage for later wrongful acts, and the parties may arrange for earlier acts to stay covered.
- Wind-down or dissolution. Once the company stops operating, it may no longer buy new coverage but can still face claims about earlier work.
- Departing individuals. Some professional and management liability policies address coverage for people who leave.
Example
A software company shuts down and does not renew its Tech E&O policy on June 30. Within the deadline in the policy, it elects a supplemental ERP. Four months later a former customer sends a demand letter alleging errors in work delivered while the policy was active. Because the ERP was in place and the claim concerns earlier work, the claim can be reported under the expired policy, subject to its terms.
What to watch for
- Deadlines. Election windows can be short and missing one can forfeit the option.
- Limits. Whether the ERP shares the expiring aggregate limit or has its own depends on the wording.
- Other coverage. Some forms limit the ERP if replacement insurance would respond to the claim.
- Continuous renewal. If you renew with the same insurer or keep the same retroactive date with a new one, you may not need an ERP. A gap or a changed retroactive date can create one.
ERP vs. related terms
- ERP vs. tail coverage. In everyday use they mean the same thing. See tail coverage.
- ERP vs. retroactive date. The retroactive date looks backward. It sets the earliest date of a wrongful act the policy covers. An ERP looks forward. It extends how long after the policy ends you can report a claim. A policy can need both to protect past work.
- ERP vs. prior acts coverage. Prior acts coverage lets a new policy cover earlier conduct. An ERP lets the old policy keep covering reported claims after it ends. Which one is used depends on the situation and the carriers involved.
- ERP vs. run-off. Run-off usually refers to a policy or arrangement that continues to cover earlier acts after a change in control or a wind-down. The term overlaps with an ERP, and the specifics depend on the form.
- ERP vs. occurrence coverage. An occurrence policy is triggered by when the event happens, so it generally does not need an ERP.
A second example: an acquisition
A hypothetical startup is acquired. Its D&O policy has a change-in-control provision that typically means coverage continues only for acts before the closing date, and the acquirer's program may not cover the target's former directors and officers for those earlier acts. The purchase agreement requires a run-off or extended reporting arrangement to be in place at closing. Months later, a former investor makes a claim alleging misstatements during an earlier funding round. Because the arrangement was in place and the allegations concern earlier acts, the claim can be reported under the prior policy, subject to its terms and limits.
Questions to ask your broker or underwriter
- What basic ERP, if any, is built into the policy, and how long is it?
- What supplemental ERP options exist, how long can they run, and how are they priced? Pricing is often quoted as a percentage of the expiring annual premium.
- What is the deadline to elect a supplemental ERP, and how must notice be given?
- Does the ERP have its own limit, or does it share the expiring aggregate?
- Is the ERP available if the policy is cancelled, or only on non-renewal?
- Does the policy include a notice of circumstances provision that could lock in a claim before it ends? See first notice of loss.
- For D&O, can individual coverage such as Side A be extended separately?
Common mistakes
- Waiting until after the policy expires to ask about an ERP.
- Missing the election deadline, which can forfeit the option.
- Assuming a new carrier automatically covers earlier work without checking the retroactive date.
- Assuming an ERP covers new wrongful acts after the policy ends. It does not.
- Not checking whether a cancellation, such as one for nonpayment, limits the ERP in your form.
Why it matters for technology, AI, fintech and digital-asset companies
Acquisitions, wind-downs and carrier changes are common in venture-backed companies. Each can end a claims-made policy, so the ERP question often comes up in deal and shutdown planning.
Venture-backed companies change quickly. Acquisitions, shutdowns, carrier changes after a hard renewal and moves between funding stages can each end a claims-made policy, and claims about earlier products, advice or governance can arrive long afterward. The ERP question matters for D&O and for technology E&O and cyber, and it is a standard item to raise early in deal and wind-down planning. See venture-backed startups.
Related terms
Frequently asked questions
What is an extended reporting period (ERP)?
An extended reporting period (ERP) is a set window after a claims-made policy ends during which a claim can still be reported and covered as if made during the policy period, generally for events that happened before the policy ended. It is often called tail coverage, and its length and cost depend on the policy.
What is the difference between an ERP and tail coverage?
In everyday use, the two terms are often treated as the same thing: extra time to report claims after a claims-made policy ends. ERP is the term commonly used in policy forms, while tail is the informal name. Check how your specific policy defines and prices the option.
How long can an extended reporting period last?
It varies by policy. Basic ERPs are often short, such as 30 to 60 days, while supplemental ERPs may last one year, several years, or in some forms be unlimited. Duration, price and any conditions are set in the policy or negotiated with the insurer.
When do I have to buy a supplemental ERP?
Usually within a deadline after the policy expires or is cancelled, and often within 30 to 60 days. The exact deadline and any required notice are in the policy. If you miss it, the option may no longer be available, so confirm the date before the policy ends.
Do I need an ERP if I renew my policy?
Usually not. If you renew continuously with the same insurer, or move to a new insurer that keeps the same retroactive date, past work generally stays covered. An ERP matters when coverage ends or a gap or a later retroactive date would leave past acts uncovered.
Does an ERP cover acts that happen after the policy ends?
No. An ERP extends the time to report claims about acts that occurred before the policy ended. It does not cover new wrongful acts, so a company that keeps operating needs a new policy.
How much does an extended reporting period cost?
The price is set by the policy or negotiated with the insurer, and it is often quoted as a percentage of the expiring annual premium, with longer periods generally costing more. Terms vary by insurer and line, so ask for the options in writing before the policy ends.
Is an ERP the same as a run-off policy?
They overlap but are not identical. An ERP extends the reporting window under the existing policy. Run-off usually refers to coverage that continues for earlier acts after a change in control or wind-down. The specifics depend on the form and the deal.
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