Directors and officers insurance is generally written on a claims made basis: the insurance applies to claims made during the policy period, or the optional extension period, for a wrongful act committed subsequent to the retroactive date stated on the declarations page. Thus, after the policy expires, it does not provide insurance for acts committed during the policy period as is the case under liability policies written on an occurrence basis. However, it is customary for D&O liability policies to carry a discovery (or “extended reporting period”) clause, which enables the insured to extend coverage for a period of time — it varies among contracts, from 90 days to 12 months — in the event that the insurance company cancels the policy or refuses to renew it.