It becomes effective automatically if needed when a claims-made policy expires. It does not require an additional premium. No separate endorsement is required to provide this extended reporting period.
When a claims-made policy is terminated, a 60-day basic ERP automatically becomes available. The insured does not have to apply for it, and no premium is charged. It provides automatic coverage for any valid claim made during the 60 days after the policy expires, as long as the incident occurred between the expiring policys retroactive date and its expiration date.