The legal malpractice insurance policy ‘Automatic’ 60 Day ERP provision does not extend coverage and does not provide a ‘grace’ period for renewing coverage. The automatic ERP extends the reporting period when no other coverage is purchased. If other coverage is purchased, then this provision does not apply.
Even with this ERP in force, there is no coverage for current acts past the policy expiration date. The extension does not allow extra time to find other coverage. If coverage lapses, there will be a gap in coverage. You may lose your past acts coverage.
The following is typical language for this policy provision:
We will provide to the Named Insured an automatic, non-cancelable Extended
Reporting Period starting at the termination of the current Policy Period if the Named Insured has not obtained another Policy of lawyers professional liability insurance within sixty (60) days of the termination of this Policy. This Automatic Extended Reporting Period will terminate upon the earlier to occur of the Named Insured obtaining another Policy of lawyers professional liability insurance or the expiration of such sixty (60) day period.
Don’t mistake this provision with giving you extra time to renew coverage.
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Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080