Aug 30, 2011

Is it a tail or a nose??

The time has come, you have chosen to retire from the home inspection business. No doubt you are looking forward to endless rounds of golf, chasing the elusive monster fish in your local secret spot, or just sitting on the back porch watching the sunset with a cold drink in your hand. Whatever the future holds, you are no doubt curious about how your insurance coverage will react, or if it will react to a claim after you stop working.

What you’re looking for is information about an Extended Reporting Period, ERP for short. In insurance I have heard it called both nose coverage or tail coverage. And, truthfully I have had insurance carriers correct me quite haughtily when they felt I used the wrong term to describe the ERP.

Most professional liability (E&O) policies come with a defacto 60 day reporting period when the policy ends. However, that may not be enough time in your opinion. So there are many times options for you to purchase an ERP at the end of your policy period for sometimes up to 3 years.

In most cases the purchase of the ERP is for a percentage of the premium of your last policy purchased. It’s a healthy percentage to be sure, but typically less than the full premium amount. And you usually purchase it towards the end of your current policy.

The InspectorPro home inspector insurance policy offers a 3 year ERP on our policy. If you’d like to learn more about it call the team at 801.610.2700

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