Publications

Public Policy Ruled Not a Mandate for Extended Reporting Periods

August 24, 2005
New York Law Journal

When a company insured by a claims-made insurance policy decides to change carriers, it is critical that counsel or a risk manager assess the need to purchase an extended reporting period (ERP) at termination of the existing policy.

The policy issued by the new carrier may not commence on the same day that the prior policy expires or may restrict coverage to claims arising out of events that take place after a retroactive date—often the inception date of the new policy. This can create a potential gap in coverage, which can often be bridged by the purchase of an ERP.