What is the extended reporting period for filing claims?

The extended reporting period, often referred to as the "tail period," allows policyholders to file claims beyond the standard reporting period after the expiration of an insurance policy. In many cases, this period is specifically set to allow insured individuals or entities to report claims that arise from incidents that occurred during the policy period, even after the policy has ended.

Choosing 60 days as the extended reporting period aligns with common practices observed in various insurance sectors, particularly in liability insurance and some specialty lines. This time frame provides a reasonable amount of time for insured individuals to gather necessary documentation and file their claims, particularly in cases where an incident's effects may not be immediately apparent.

Being aware of the extended reporting period is crucial for both claimants and adjusters because it ensures that claims are not prematurely dismissed due to timing issues, allowing appropriate coverage for claims that might take additional time to recognize or process after a policy ends.