The Benefits of ERP Coverage
If your business is going through an insurance transition, you may not be protected from claims made under your expired plan. When you add Extended Reporting Period protection to certain policies, the coverage can continue for a time after your policy expires.
What Is ERP Protection?
When you decide to cancel a claims-made policy, such as professional liability or errors and omissions insurance, and you don’t have ERP coverage, you won’t be protected if you are sued for actions taken under the old policy. There are two types of ERP insurance that are designed to protect your business.
- Basic Extended Reporting – With this type of ERP, your coverage is extended from 30 to 60 days, depending on your policy.
- Supplemental Extended Reporting – Your insurance provider may offer this option which can range from one to five years.
It’s important to note that ERP insurance can’t be applied to occurrence-based policies.
What Scenarios Will Benefit From ERP Coverage?
There are various scenarios in which ERP coverage is helpful. A couple examples are listed below:
- If you retire, ERP will protect prior work activities covered under your previous policy.
- ERP will protect your company during an insurance transition time.
ERP coverage will give you peace of mind and financial security during uncertain times. Your insurance agent will help you find the right coverage for your business.