Extended Reporting Period / Run-off Cover (Nachhaftung)

Concept

An extended reporting period refers to the continuation of insurance cover beyond the end of the actual contract term for losses resulting from causes occurring during the coverage period but reported only after the contract has ended. It is particularly relevant in connection with claims-made coverage, where the cover attaches to the date the claim is reported rather than to the date of the causative event.

Relevance upon Termination of the Insurance Relationship

Without an extended reporting provision, terminating a claims-made policy would eliminate cover for losses caused during the contract term but reported only afterward – a significant risk, particularly for professional liability policies with long latency periods. The extended reporting period closes this potential coverage gap through a time-limited or unlimited extension of the ability to report claims.

Extended Reporting in Reinsurance

Extended reporting also plays a role in reinsurance when a cedent exits a reinsurance treaty or the treaty is terminated: here, the run-off clause governs the extent to which the reinsurer remains liable for losses from the expired treaty period that only become known to the cedent after the treaty has ended, making it closely related to loss portfolio transfers and other legacy solutions for run-off books.