The CPA professional liability policy is issued on a "claims-made and reported" basis, meaning that the policy in place at the time that the claim is reported is the policy that will respond.
Insured members who are taking maternity/parental leave are still at risk for professional liability claims as claims can be made days or even years following an incident or exposure. With a “claims-made and reported” policy, it is recommended that you maintain your coverage while on temporary leave from practice to protect against such circumstances.
Good news! Insured members who discontinue practice due to retirement, maternity leave, or parental leave are provided with Extended Reporting Period (ERP) coverage at no additional charge. Extending the reporting period of your policy means that you are securing insurance to respond to potential future professional liability claims arising from incidents or services that occurred while your policy was active.
Members who leave practice are automatically provided with 10 years of ERP coverage at no additional cost. Members who have been insured under the CPA program for at least two years prior to leaving practice qualify for a total of 20 years of ERP coverage at no additional cost.
This means that if you are participating in the CPA insurance program and have discontinued practice because of retirement, maternity leave, or parental leave, you may continue to report eligible professional liability claims arising from your past practice for up to 10 or 20 years, depending on your eligibility. Members returning to practice must renew their insurance and have an active policy in place before resuming professional services.