Understanding Extended Reporting Periods (ERP) for General Liability Insurance Policies

An extended reporting period attached to a general liability policy provides coverage in which of the following ways?-It provides coverage for claims made outside the policy term.-It gives an additional 30 days coverage beyond the policy term.-It gives an additional 10 years coverage beyond the policy term.-It covers any gap between the claims-made and occurrence forms.

It provides coverage for claims made outside the policy term.

An extended reporting period (ERP) is an optional add-on to a claims-made general liability insurance policy that provides continued coverage for claims made beyond the expiration of the policy coverage period. An ERP can be added for a period of time, typically up to five years.

So, the correct answer to the question is:
– It provides coverage for claims made outside the policy term.

With an ERP attached, the policyholder can report a claim that arose during the policy period but wasn’t reported until after the policy has expired. The ERP provides an extended window for reporting such claims. It is important to note, however, that an ERP does not extend coverage for new claims that arise after the policy has expired. It only extends the time to report a claim that occurred during the policy period.

More Answers: