Supplemental Extended Reporting Period
What Does Supplemental Extended Reporting Period Mean?
A supplemental extended reporting period is an additional time frame after a liability policy expires during which a policyholder can report a claim and still receive coverage. In many liability policies, claims made after the policy period ends are not covered. Supplemental extended reporting periods provide coverage for claims reported within a specified period following the expiration of the policy.
Insuranceopedia Explains Supplemental Extended Reporting Period
Supplemental extended reporting periods (SERPs) are particularly beneficial for companies that anticipate needing to file a claim after their policy period ends. Without a SERP, a company may be forced to bear the full financial burden of a claim, which could be devastating, especially for small businesses facing large claims. To obtain an SERP, policyholders typically need to request it and pay an additional premium.
