Definition - What does Discovery Period mean?
A discovery period is the time after the maturity of an insurance policy, during which the insured is allowed to identify any loss incurred while the policy was still in effect and file a claim.
Insuranceopedia explains Discovery Period
Discovery period may also pertain to the grace period during which the insured may report losses after they have cancelled a bond or contract. When the losses are reported during this time and if such losses were proven to have existed during the covered period of the bond or the policy, the insurance company or the original surety must pay the claim.
The discovery period is usually one year.
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