Sports Insurance Glossary : Letter E

    Earned Premium - That part of the total property/casualty policy premium earned by the insurance company which applies to the expired portion of the policy period.

    Employee Benefit Liability - This coverage protects you, an employer, from claims by employees or former employees resulting from negligent acts or omissions in the administration of your employee benefits programs. Employee Benefits programs can be defined include group life, health, and accident insurance, profit sharing plans, employee stock subscription plans, and workers' compensation, unemployment insurance, social security benefits, disability benefits, etc.

    Employers' Liability Insurance - Provides protection for the employer for those bodily injuries, whether accident or disease, sustained by employees in the course of employment, not otherwise covered under workers' compensation law.

    Endorsement - An additional piece of paper, which was not part of the original insurance contract, that cites certain terms, conditions, or changes, and which becomes a part of the insurance contract. Additions to personal lines insurance policies are accomplished through the use of riders, which are similar to endorsements.

    Employment Related Practices Liability - This insurance defends and pays losses incurred by you for wrongful employment acts. Wrongful employment acts includes alleged acts of discrimination, harassment, negligent hiring and/or inappropriate employment decisions made by you, against employees, both past and present, or an applicant for employment.

    Errors & Omissions Liability - This insurance provides defense and pays losses which you are legally obligated to pay for monetary losses incurred by third parties as a result of your wrongful acts (errors or omissions committed solely in the performance of, or failure to perform professional services). Unlike Directors & Officers coverage, which is restricted to those individuals, this coverage is typically written for the corporation or organization.

    Excess / Umbrella - This type of liability insurance provides coverage over a single underlying policy, or several different underlying policies. The limits provided by this policy will not respond to the loss until after some specified underlying policies limits are spent, exhausted, or otherwise not available. If underlying limits are not available, and the coverage is not excluded from the Excess/Umbrella coverage, this policy will respond as primary.

    Exclusion - A provision in the insurance policy which denies coverage for certain perils, persons, property or locations.

    Extra Expense - This insurance is designed to pay for costs in excess of normal operating expenses that are incurred by a business in order to continue operations without interruption after a direct property loss, or in order to minimize the interruption. This coverage is not a substitute for Business Income (Interruption) coverage, as this coverage does not provide any recovery for any loss of income, despite all efforts to continue operations.

    Exposure - This term in the insurance field may have several meanings: (1) possibility of loss; (2) a loss potential as measured by type of construction, area or values; (3) a possibility of a loss being communicated to an insurance risk from its surroundings; or (4) the unit of measure of the amount of risk a company assumes (for example 50,000 spectators are a single event).