Final answer:
An Extended Reporting Period (ERP) is a feature of claims-made CGL policies allowing for an unlimited time frame to make claims for incidents that occurred during the policy period. This optional feature, which must be purchased or included under certain conditions, is essential for coverage against late-filed claims.
Step-by-step explanation:
The feature of the claims-made CGL (Commercial General Liability) policy that provides an unlimited extension for making claims for losses that occurred during the policy period is known as the Extended Reporting Period (ERP). The ERP, sometimes referred to as "tail coverage," allows claims to be reported even after the policy has expired, as long as the incident that gives rise to the claim occurred during the time the policy was in effect. It's important to note that this is an optional feature and must typically be purchased separately or may be included under certain conditions.
The ERP is crucial for protecting against claims that may be filed after the policy period ends but stem from incidents that occurred while the policy was still active. This feature is particularly important for professionals and businesses, as some claims, especially those related to professional liability, may not surface until long after the policy period.