In the context of extended reporting endorsements, what is important about claims reported during the policy term?

In the context of extended reporting endorsements, the important aspect of claims reported during the policy term is that they are covered under claims-made policies. Claims-made policies are designed to provide coverage for claims that are made during the policy period, regardless of when the event that triggered the claim occurred, as long as the policy was in force when the claim was made.

When a claims-made policy is supplemented with an extended reporting endorsement, it extends the period during which claims can be reported following the termination of the policy. This means that if a claim is reported during the original policy period, it will be covered by the terms of that claims-made policy. This is crucial because it ensures that the insured remains protected from claims that arise from incidents that may have happened during the coverage period, even after the coverage has ended but the claim was reported in the allowed extended reporting period.

This mechanism provides a level of security for both the insurer and the insured, ensuring that obligations related to claims made during the policy term are met, while also enabling the insured to have extended access to benefits for a defined period after the policy concludes.