You’ve said I’m not covered if I have to cancel my policy and a claim is made against me after the policy is expired? What do I do?


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It’s true – if you don’t renew the Professional Liability policy or you cancel it, and a claim is made against you after the expiration date, you will not have coverage. We’re happy to advise however, there is a solution for this!

It’s called an Extended Reporting Period (ERP) or “run off” coverage, and it is available to you via Cover Advantage if you meet certain criteria, and as long as you’ve had your policy in force for at least 12 months. For a reduced annual premium, it protects you for claims made against you after you’ve shut down your business, and your policy has been cancelled or expired. It’s important to remember, you may not necessarily know you have a claim brewing, so it can and does happen that you receive notice of a lawsuit after you’ve ceased operations.

Buying an ERP is strongly recommended when you are ceasing operations. Perhaps you’re making a career change, going back to school, or are retiring. It makes sense that if you are no longer operating your business, you don’t need the policy anymore. But it leaves you unprotected for claims that come up after you’ve shut down, for things that happened while you were still in business (prior acts). Note that it will not cover you for damages that arise during the extended reporting period (i.e. you take a job during the ERP), and it must be purchased prior to the expiration of your Professional Liability policy.

To purchase an ERP call or email us.