Section 9.19 Extending Coverage Upon Nonrenewal

• Library: Insurance Practice 2015

Most policies give insureds an option to obtain an extension to their policy period if the current policy is cancelled or if the insurance company declines to renew it. The extended “discovery period” is so described because it provides coverage only for claims resulting from wrongful acts that occurred before the effective date when coverage under the main policy terminated. This period may terminate early if the insured obtains replacement coverage. 2 William E. Knepper & Dan A. Bailey, Liability of...