01 / The meaning
What it means.
Check how the contract uses the term. It may refer to a period for claims first made against the insured, a period for reporting certain claims, or a period in which existing claims are administered. Those are different mechanisms. Extending notification time does not necessarily extend cover for new acts or for claims first made after the original expiry date.
Duration should be considered with the cessation date, prior-acts provisions and aggregate limit. A multi-year period can leave a single pool of cover available for all claims throughout that time. The appropriate length depends on the activities, potential delay before allegations emerge, contract requirements and applicable law. Avoid treating a commonly discussed period as a universal limitation period or assurance that liability cannot arise later.
02 / Put it in context
A practical example.
Hypothetical example: a company sale includes a six-year management liability arrangement. The former directors ask whether that is a fresh policy or a reporting extension, which pre-sale conduct is included and whether defence expenses reduce one shared limit over all six years.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify what must happen within the period: an act, claim or notification.
- Confirm the exact start and end dates and any cancellation provisions.
- Check whether limits renew annually or remain shared across the entire period.
04 / Start a useful conversation
A question for your broker.
What rights does this run-off period extend, and what remains excluded once the original policy period has ended?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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