Have you ever really looked at your insurance policy or examined details on items like an extended reporting period? For so many policyholders, the insurance transaction means communicating with a new agent—or perhaps one that you have had for years—and purchasing whatever coverage is necessary, putting the policy in a file, and then reminding yourself of the due dates for payment. In exchange for this ‘product’ you are buying, you receive a policy outlining all the details of how the insurance company will pay for any claims.
Most consumers are concerned with the features offered in basic auto policies, such as what types of coverage they need for bodily injury, property damage, comp and collision, and more. For homeowners, they may wonder about coverage for their home structure, the contents inside, and liability in case someone is hurt on the premises. In some cases—and especially if you are a working professional like a doctor, for instance—you may need more complex insurance in the form of a claims-made liability policy. This type of coverage protects you only if you have a policy in place when the claim is filed, however, and the policy must have been renewed continually, covering you within the time that the claim of negligence was made.
The extended report period can be extremely helpful if a claim is filed after coverage ended. Even though the event causing the claim may have occurred while your policy was in force and you were paying premiums, if the claims-made liability policy is not longer in force, the insurance company does not have to pay. With an extended reporting period in place, however (also known as a tail), you are allowed more time to report a claim to your insurance company—and this could save you from serious financial problems. Time periods for the ERP vary in length, from one to five years, or maybe even ten in some cases. An ERP for a shorter period of time may actually be included in your claims-made policy but is much shorter—usually only a couple of months at the most though. Longer ERPs are purchased as an endorsement to your policy.
If you need help reviewing your insurance policy, or if you suspect your insurance company may be denying your claim in bad faith, contact the attorneys at the Bolender Law Firm. If a dispute over a claim cannot be easily resolved through a call or written communication, our attorneys will advocate on behalf of policyholders through litigation, arbitration, or non-binding mediation. Our attorneys are experienced in representing clients in state and federal courts, at both the trial and appellate level. Call us at 310-320-0725 now or submit an easy consultation request online. We are here to help!