Extended Reporting Period (ERP)

Overview

Professional liability policies are written on a claims-made basis, meaning a claim must be both made and reported during the active policy period. When a policy is cancelled or non-renewed, the insured loses the ability to report new claims — unless an Extended Reporting Period (ERP) endorsement is in place.

An ERP extends the insured’s right to report claims after the policy ends, for incidents that occurred during the covered period.

ERP Types

Standard ERP (Automatic)

A basic 60-day extended reporting window is provided at no additional charge when a policy is cancelled or non-renewed. This gives the insured time to report any pending claims before coverage lapses completely.

Optional ERP (Paid)

The insured can elect a longer extended reporting period — typically 1, 2, 3, or 5 years — for an additional premium. This must be elected within a specific timeframe after the policy ends.

Retirement ERP

Available when the insured is retiring from practice. A reduced premium applies given that retired professionals generate no new work exposures.

Offering an ERP

When a policy is cancelled or non-renewed, the system includes an ERP offer letter with the close-out documents. The producer should discuss the ERP option with the insured at the time of cancellation.

Processing an ERP Election

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ERP election screen showing coverage period options, premium calculation, and Submit button

ERP election screen showing coverage period options, premium calculation, and Submit button

When the insured elects an optional ERP:

1. Open the policy from Policy Search or Renewals.
2. Navigate to the ERP tab.
3. Select the coverage period (1 year, 2 years, etc.).
4. Review the ERP premium — this is calculated automatically based on the expiring premium and the period selected.
5. Click Submit ERP Election.
6. Process the ERP payment.
7. Generate and send the ERP endorsement document.
8. The policy status updates to ERP.

Note

ERP premiums are a percentage of the expiring policy’s annual premium and vary by product line and coverage period. Rates for each option are shown on the ERP election screen.

Caution

ERP elections have a deadline — typically 30 days after the policy cancellation or non-renewal date. After this window passes, the option is no longer available. Make sure to communicate the deadline clearly to the producer at the time of cancellation.

ERP Documentation

State-specific ERP endorsement forms are used for:

• Standard policies
• Virginia-specific requirements
• New York-specific requirements
• Accountants coverage
• Cyber Liability ERP

The system automatically selects the correct form based on the policy state and product line.