What Happens After Practice
An extended reporting endorsement (ERE) – also known as tail coverage – is needed because of the claims-made nature of lawyers professional liability insurance. A claims-made policy provides coverage for alleged actions that occurred during the time the policy was in effect. In other words, the coverage provided in a claims-made policy ends when the coverage terminates.
Professional liability policies afford coverage for one year at a time, so in order for an attorney to have coverage in place at all times, a policy must be obtained every year. Continuity of coverage is paramount in claims-made coverage. When an attorney changes firms,* becomes a judge, retires or exits private practice for any reason, an ERE becomes available and necessary.
Your ERE is not a separate policy. Instead, the endorsement extends the terms and conditions of the prior existing OAMIC policy and allows an additional period of time in which a claim may be reported to OAMIC, allowing you to report claims to the insurer after the policy has expired or been cancelled.
*Some firms only provide coverage for claims made while you are a member of said firm. Be sure to ask if their policy extends coverage for acts prior to you joining (commonly called “prior acts coverage”). To learn more about prior acts, see our Claims Made Policy Information page.