Category: Insurance definitions · Reviewed by Matt Bartlett, Director · Founder · Last reviewed May 2026
A PI extended reporting period (ERP) is an additional window — added to a claims-made professional indemnity policy — during which the insured can still notify claims arising from work done before expiry. Also called a “discovery period” or “tail”, it gives the firm a safety net when cover is not being renewed, when the insurer is leaving the market, or when the firm is winding down. It is not the same as a full run-off policy.
UK PI policies are almost universally written on a claims-made basis. That means the policy responds to claims first made against the insured, and notified to the insurer, during the policy period — regardless of when the underlying work was done (subject to the retroactive date). When the policy expires, the right to notify normally expires with it.
An extended reporting period extends the notification window. It does not extend the period of insurance for new work; it extends the time during which claims arising from past work can still be notified to the expiring insurer.
There are typically two flavours:
Compared with full run-off cover, an ERP is typically simpler: it extends notification on the same policy with the same limit (often the unused balance of the aggregate or each-and-every cover at expiry). Run-off is normally a fresh policy with a defined limit for the run-off term, more comprehensive provisions, and a clear regulatory positioning. See run-off cover.
When a policy reaches expiry and is not renewed, the insurer’s standard process triggers any automatic ERP. The firm should receive written confirmation of the ERP duration and terms. Optional ERP requires the firm to request it before expiry (or within a short post-expiry window) and pay an additional premium.
Several practical features follow:
Consider a Bristol management consultancy with £250,000 fee income, a £1m aggregate PI limit and a £5,000 excess. The consultancy is being acquired and the founder is winding down the old company. The expiring PI policy will not be renewed because the new owner has their own cover.
The PI policy includes a 60-day automatic ERP on non-renewal (no additional premium) and an optional 36-month ERP available for an additional premium of approximately 175% of the expiring annual premium.
If only the 60-day automatic ERP is relied on, claims notified in that two-month window from any client engagement during the policy period are covered against the remaining limit. Any claim notified more than 60 days after expiry would not engage the policy.
The founder buys the 36-month optional ERP for £6,800. This extends notification on the policy through to mid-2029, covering any matters that surface as the older engagements work through their limitation periods. The cover does not extend to new work done by the founder after expiry; for any new advisory work, a fresh policy with a suitable retroactive date is needed.
The figures are illustrative. The structural point is that the ERP buys time to discover claims, not new cover.
Insurer withdrawal or non-renewal. When an insurer pulls out of a class of business or declines to renew, the firm may struggle to find replacement cover that includes a continuous retroactive date. An ERP on the expiring policy keeps notification rights alive while replacement cover is arranged.
Firm wind-down and exit. Founders selling, retiring or closing a firm need to think about how long the limitation tail on past work could last. For most professional services, six years is the contractual limitation period; longer for tort claims with deferred knowledge. An ERP can cover the early years, with formal run-off taking over for the rest.
Mergers, acquisitions and corporate restructuring. When firms merge or are acquired, the acquiring firm’s PI may not cover historic acts of the acquired entity. An ERP or run-off policy on the legacy entity is often part of the deal structure. M&A diligence regularly turns on this.
UK PI policies use a range of terms for ERP. Look for:
The wording governs. Brokers should walk the firm through ERP triggers and limits at every renewal where post-cessation cover is plausibly in scope.
Is an ERP the same as run-off cover?
No. An ERP extends notification on the expiring policy, typically with the same limit and conditions. Run-off is a separate policy bought to cover historic acts after a firm ceases practising, usually for several years, often with a fresh limit structure and regulator-specified terms. Solicitors and most architects have specific regulatory expectations about run-off that an ERP alone may not satisfy.
How long is a standard ERP?
Automatic ERP is usually short — 30, 60 or 90 days. Optional ERP available on payment of additional premium is commonly one to six years on commercial PI. Longer periods are usually structured as formal run-off. The exact options vary by insurer and wording.
When does an automatic ERP trigger?
Triggers vary by wording but commonly include: non-renewal by the insurer, non-renewal by the insured, insurer withdrawal from the class, firm cessation, and cancellation other than for non-payment or dishonesty. Some wordings exclude triggers where the firm has bought equivalent cover elsewhere (an “other insurance” condition).
Does ERP cover new work done after expiry?
No. An ERP extends the notification window for work done during the policy period. New work after expiry requires a fresh policy or a run-off policy that expressly covers ongoing wind-down activities. Firms still trading should not rely on an ERP as continuation cover.
Can I buy ERP if I am cancelling for non-payment?
Usually not. Most wordings exclude non-payment cancellation from the ERP triggers, on the basis that the insurer should not be obliged to extend cover where premium is unpaid. Some allow a curative ERP if outstanding premium is settled before the request, but it depends on the wording and the underwriter’s view.
Does the ERP reinstate the limit of indemnity?
Usually not. Most ERPs continue the expiring policy’s limit (typically the unused balance). A handful of wordings offer reinstatement on payment of an additional premium. Without reinstatement, claims notified during the ERP draw down whatever remains of the original aggregate.
How does ERP affect FOS jurisdiction?
The FOS jurisdiction depends on when the firm was authorised, not on whether a particular policy includes an ERP. Claims falling within FOS jurisdiction can be pursued there regardless of PI policy structure. An ERP affects whether the insurer will indemnify a FOS award notified after policy expiry. See FOS jurisdiction PI.
What about solicitors under SRA MTC?
The SRA’s MTC for solicitors include mandatory six-year run-off for firms that cease practice, provided by the last qualifying insurer. Brokers should not treat an ERP on a non-MTC policy as a substitute for the SRA run-off entitlement. Architects under ARB’s PI criteria, accountants under their professional body’s PI requirements, and surveyors under RICS rules each have their own post-cessation expectations.
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Apex Insurance Brokers Ltd is a Bristol-based insurance broker authorised and regulated by the Financial Conduct Authority (firm reference number 724952). The company is registered in England and Wales under Companies House number 07014570. Contact: info@apexinsurancebrokers.co.uk | 0117 325 0027.
Last reviewed: May 2026 by Apex Insurance Brokers Ltd.
Important: this article is general information, not advice on your specific circumstances. For advice on PI insurance for your firm, contact us on 0117 325 0027 or info@apexinsurancebrokers.co.uk.
Apex Insurance Brokers serves UK professional services firms and commercial businesses. Call 0117 325 0027, email hello@apexinsurancebrokers.co.uk, or request a quotation.
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