If you own a business and want to make sure you are correctly insured in case something goes wrong, you need to consider all your insurance options carefully. One of these options is ERP insurance coverage.
What Is ERP Insurance Coverage?
ERP stands for extended reporting period and essentially gives you extra time to report a claim after your policy has expired. This amount of time is usually specified and can vary depending on the insurer.
Most ERP options fall under two categories: short-term ERPs and long-term ERPs. Short-term ERPs generally last for 30-60 days after your policy expires and are often provided automatically if your insurer cancels your policy. On the other hand, long-term ERPs need to be specifically requested in writing and are only granted if you pay a premium within a specified time period.
Why Do You Need ERP Insurance Coverage?
ERP insurance coverage basically offers extra protection on top of what basic insurance already provides. It provides you with coverage even if your policy period has ended, while basic insurance only insures you during the policy period.
If you own a business, it is vital that you protect it against everything that can go wrong. Part of this is purchasing adequate insurance. Extended reporting period insurance can ensure your business is safe from claims made after your policy expires.