What is an Extended Reporting Period (ERP) Endorsement?
Frequently referred to as “Tail Insurance” or “Tail Policy”, an Extended Reporting Period Endorsement or ERP is not a separate policy at all. An ERP is unique to “claims made and reported insurance” because a lawyer continues to need insurance protection for Professional Services already rendered at the time the LPLI policy expires in order to protect the lawyer from a subsequent claim arising from those Professional Services.
An ERP is simply an endorsement attached to an existing LPLI policy that extends the time within which a claim may be reported under the policy.
Why does this matter to you?
It is important to note that an ERP does not extend coverage for Professional Services rendered after expiration of the existing LPLI policy, but rather extends the time during which a claim may be reported to the Insurer for a claim arising from Professional Services rendered prior to the expiration of the LPLI policy.
Does is it cost anything to buy an ERP?
Yes and no. All three of ALPS’s Lawyers' Professional Liability Insurance policies provide the opportunity for the Named Insured to purchase an ERP of different duration, including an ERP of unlimited duration.
For a 1-year ERP, you can expect to pay around 125% of the expiring premium and an unlimited ERP can cost around 300%. ERP's of other durations will vary depending on your carrier.
How do I get a Free ERP?
ALPS Preferred and Premier policies also offer industry-leading free extended reporting periods for certain qualifying events like retirement, death, total and permanent disability, and active military service.
Also known as an Extended Reporting Endorsement (ERE), this endorsement must be offered as a policy benefit in most states, but the terms and conditions of an ERP or ERE vary among insurers.
Related Insurance Definitions
Claims Made and Reported Policy
Limits of Liability (Per Claim vs. Aggregate)
Prior Acts Coverage
Retroactive Coverage Date or Retroactive Date
Supplementary Payments or Sub-Limit Coverages