An extended reporting period allows certain claims to be reported after a claims-made policy ends for covered acts from before it ended.
Definition
An extended reporting period is a period after a claims-made policy ends in which the insured may report certain claims tied to professional acts that occurred before the policy ended. It is often called tail coverage, although the exact terms and availability depend on the policy and insurer. The period may have a defined length, cost, eligibility conditions, and reporting procedure. It does not extend the time to perform covered work or automatically cover new acts after the original policy ends. Nor does it remove exclusions, limits, or other policy conditions. Owners may consider it when a firm changes insurers, closes, or transfers operations, because claims about completed engineering work can arise later. The policy wording determines how the reporting period interacts with the retroactive date and prior coverage. See professional liability insurance for related context.
How owners use it
- Owners review tail availability and reporting steps when a claims-made policy is ending or the firm is changing insurers.
- A firm includes policy and extended reporting period records in its transaction or closure planning documents.
- If a claims-made policy ends on June 30 and an applicable extended reporting period lasts 60 days, the reporting window runs through August 29, subject to the policy's counting rules.
- Owners distinguish an extended reporting period for claims about past acts from new coverage for work performed after the policy ends.
