What is a Coverage Period?

A coverage period is the period of time during which an insured event is protected by an insurance contract. Outside of the coverage period, a loss is not covered by such a contract. From a loss prevention perspective, it can make sense for an insured party to have a procedure in place to always verify when coverage periods expire, so that replacement contracts can be obtained with enough time to avoid a loss of coverage. It can also make sense to extend the coverage period somewhat past the date of the event for which the insurance was obtained, in case the event occurs later than expected.