Extended Reporting Period Coverage and Your Business
While examining potential insurance coverage for your business, you might notice some policies offer a handful of additional options. ERP insurance, for example, is an option that grants a policyholder an extended reporting period. This allows you the chance to report a claim even after your policy period has ended. This option is also referred to as a tail policy.
Do You Need an Extended Reporting Period?
Determining whether or not you need this option comes down to the exact nature of business you own. A tail policy is most beneficial to businesses that will be closing down or sold to another owner at some point in the future.
Determining the Plans Length
If your business is a good fit for ERP insurance, then you need to determine how long of a coverage period you should be purchasing. A 3-year plan is the most commonplace option to consider according to experts. Still, you may find a 5-year plan is a more practical fit. Base the plan on the unique needs of your business and youll find the best timeframe. Remember, claims can be reported past the end date of the policy, but the incidents had to have taken place during the policys active period.
Evaluating the options offered for your policy coverage can help you make the most of your plan. An option like ERP insurance can make a world of difference for your business.