Let’s say you have a one-year professional liability insurance policy for your consulting business. During that time, you gave a client business advice. Your insurance policy expires after a year. Only then do you learn your client suffered financial losses, for which they blame you.
This is where an extended reporting period comes in. You can still file a claim with your insurance company to help cover legal costs because the incident happened when your insurance policy was still active.
While runoff insurance and ERP are both designed to provide coverage for claims made after an insurance policy has expired, there are important differences:
An extended reporting period can be beneficial if you’re changing insurers or your business activities (including closing the business). ERP can give you extra coverage if you need to file a claim for something your previous insurer still covered or for past activities.
Also, if you or an employee retires, ERP can offer protection for potential future claims that stem from your or your employee’s work.
NEXT provides you with round-the-clock online access to your plan and policies, making it easy for you to manage your coverage whenever it’s convenient for you.
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