Professional Liability Insurance SimplifiedKeeping Your Insurance Simple & Effective
Have Questions? Need Help? Call Us! 1-877-569-4111

Do I Need To Purchase An Extended Reporting Period?

April 9, 2018

Extended Reporting Period Protexure Lawyers Professional Liability Insurance

An Extended Reporting Period (also known as ERPs or “tail coverage”) is intended to cover potential gaps between policies or practices, allowing you to extend the time available to report a claim made against you after last policy has expired. These options do not provide coverage for claims made over work first begun or performed after that expiration, however.

 

Let’s think about different scenarios where an Extended Reporting Period is relevant:

         You leave a firm to strike out into solo practice:

If your prior firm is staying in business and maintaining its malpractice coverage, then you should be able to safely assume that their insurance policies will cover you for any claims made against you after you leave the firm, so long as the claims arise from work you did while at that prior firm. Lawyer malpractice policies are written to cover work by former members or associates of a firm and, so long as the firm continuously maintains coverage, any in force policy should relate back to any work done by anyone from the firm in prior times.

The caveat here, however, is that, if your former firm goes out of business or fails to continuously maintain coverage, you may need to seek some sort of endorsement from their past carrier, or from your current carrier, to fill in any possible gaps in coverage.

          You leave a firm to join another firm that has been in business for a while:

If both firms have maintained continuous coverage—even if they have switched carriers now and then—you should not need to worry about filling in any gaps on your own. This is because your former firm’s insurance policies should speak to any claims brought after your departure over work you did while with that firm, while your new firm’s insurance should cover you for all work you do from the time you join the firm. The only two concerns to affect this would be if you provide any services to clients on your own between the time you leave one firm and join another, or if your old firm fails to maintain continuous coverage after your departure, opening the possibility that you might not be covered if a former client sues after their last policy expires. 

         You retire from practice altogether:

When you retire, it is most important to maintain some extended coverage because you could find yourself hit with a lawsuit several years after your last day at work, depending upon the nature of your practice and limitations periods in your jurisdiction. Most carriers will offer a very reasonably-priced extended reporting period for retiring attorneys provided they have been insured with that carrier for some specified period of time. Thus, if you’re planning to retire within the next five years, it’s not in your best interest to switch from carrier to carrier chasing lower prices or scaling back coverage; what you think you’re saving could cost you more later on if you can’t find the tail protection you’ll need in retirement. 

Another important risk to consider in retirement: if you are retired, stay retired, or you could jeopardize whatever extended coverage you put in place. Your extended reporting period won’t speak to claims arising from work you do after your last policy expired, and that new work may even void your retirement endorsement terms.


Protexure Lawyers /// Professional Liability Made Easy

“I found the Protexure representatives to be extremely professional, knowledgeable, and courteous. They found similar coverage for me for a substantial amount less than I had been paying. I have been pleased with Protexure’s service and would recommend it highly.”

- David M. Lipschutz, Esquire

Receiving a quote from Protexure Lawyers is made super easy by the quick response time of their team. The renewal process is different from what I have ever seen, they offer a mostly filled out application which made the process even easier for me!

- Eric Schwab - Woodbridge, NJ

It was a pleasure working with you, - you gave me the most competitive price, quick turn around and good follow-up.

- Howard S. Kavenow

My account representative was very helpful in assisting me to complete my application. He made me feel like my questions and my business were a priority to him.

- Kim Davis

When faced with a substantial increase from our existing malpractice carrier, we received the name Protexure Lawyers from a referral. On contact, they were not only very prompt in processing our application, but also responded to several coverage questions we had. So far, the service has been excellent.

- Law Office of Shriver, O'Neill & Thompson

Mr. Dixon contacted me many months ago and I told him I renew my policy in September and that it would be helpful to contact me in July or August of this year. He did that; he was very patient with me and assisted me with the application process. He was extremely prompt in replying to my inquiries. I had been with the same company for many years so I was reluctant to leave them. He made the transition quite simple. I am fortunate that he was the salesman who contacted me.

- Robert Lewin

Thanks. You guys got my business because (a) your price was great, and (b) you were responsive and on top of things (a number of insurers surprisingly were not).

- Scott Maxwell

I first came in contact with Ryan on a cold call. Usually I am dismissive of these types of calls, but Ryan was brief and to the point - no hard sell or over promising. In the end, I received a less expensive policy than others I researched. I guess not all cold calls are a bad thing.

- Steve Hunter

Ryan offered to compare my current insurance with what he and his company could offer. I took him up on this, and gave him my pertinent information. I did my own research, and discovered that his quote was lower and the carrier had an A rating. I contacted my existing agent to see if she could match the quote. I had been her customer for a number of years and thought that was fair. She was unable to match Ryan's offer.

- Steve Hunter

I discussed some minor differences in the policies with my account representative, and throughout the process, he was easy to reach and called me back promptly. I value this a great deal. In the end, it was clear to me that I would receive a less expensive policy than I currently have, with the same coverage and excellent customer service.

- Steve Hunter

Copyright © 2018 All Rights Reserved

Have A Question?

We are here to help! Fill out the form below and we will get back to you shortly.

You have Successfully Submitted your question!