Liability · Insurance Term
Extended Reporting Period (Tail Coverage)
Definition
An extended reporting period (ERP), often called tail coverage, gives you extra time to report claims after a claims-made policy ends or isn't renewed. The claim must arise from an act that happened before the policy ended and after its retroactive date.
In Plain English
Under a claims-made policy, a claim usually must be made and reported during the policy period. If you cancel, switch insurers without matching coverage, or sell the business, later claims about past acts could go uninsured. An ERP keeps the reporting window open.
Many policies include a short automatic ERP and offer a longer one for added premium, which you must elect within a set time. Keeping your original retroactive date with a new insurer often removes the need for a tail.
Occurrence policies don't need tails, because they cover events during the policy period no matter when the claim is made. D&O and EPLI are common places where tails matter.
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Example
Hypothetical and simplified: An owner sells a property management company and cancels its EPLI policy. Four months later, a former employee files a discrimination claim about events before the sale. Without an ERP, the claim may be uninsured; with a purchased three-year tail, it may be covered.
What to Watch For
- Before canceling a policy or selling a business, ask what tail options your claims-made policies offer.
- Note the deadline to buy an optional ERP.
- Confirm that a new policy keeps your original retroactive date.
- Ask whether the ERP shares the expiring policy's limit or has its own.
Last updated October 14, 2026 · Primesure editorial team · How We Write