A provision found within an extended reporting period (ERP) endorsement of a claims-made liability policy. Such provisions state that in addition to covering claims reported to the insurer during the ERP, the policy also covers “incidents” or “circumstances” reported to the insurer that have the potential to produce a claim in the future.

About half of all ERP provisions are written on this basis, which is favorable for an insured because regardless of how far in the future a claim is made against the insured in conjunction with a reported “incident” or “circumstance,” coverage will apply under the ERP.

 

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