Coverage does not last forever. The policy term is the period during which the insurance contract is in force, from the effective date to the expiration date stated in the declarations. Common terms are six months or one year, though multi-year terms exist in some commercial lines.

Premium is calculated for the full term and may be paid in installments. Claims for losses occurring during the term are potentially covered, subject to all other policy provisions. At expiration the policy may be renewed, rewritten, or allowed to end.

Mid-term cancellations and endorsements can alter the original term. Continuity of coverage is important for claims-made policies and for avoiding gaps that leave the insured exposed. Calendar reminders and broker monitoring help ensure timely renewal decisions before the term ends.

• Duration the policy is in force
• Defined by effective and expiration dates
• Typically six or twelve months
• Renewal or replacement needed at expiration