E
e-business
- The transaction of business by way of electronic media, such as telephones,
fax machines, computers, and video-teleconferencing equipment. This
generally is broader than e-commerce although some may view e-business
and e-commerce as interchangeable terms.
e-commerce
- The buying and selling of goods by way of electronic media, such as
telephones, fax machines, computers, and video-teleconferencing equipment.
Earned
premium - Portion of a premium for which the insurer has already
provided protection.
Earnings
insurance - A simplified form of insurance covering business income
loss, limited to a set percentage of the policy’s total amount for recovery
of proved loss for each 30-day period.
Earth
movement - Subject to an exclusion in property policies, this peril
includes earthquake, landslide, mudflow, etc.
Effective
date - The date shown in the declarations of a policy upon which
coverage is to take effect.
Employee
dishonesty coverage - Insurance protecting employers from loss due
to theft by their employees.
Employers
liability insurance - A feature of standard workers compensation
policies, this coverage applies to liability that may be imposed on
an employer outside the provisions of a workers compensation law.
Employers
nonownership liability - Employers who buy commercial auto coverage
on a basis other than "any auto" have this exposure whenever
an employee uses his or her own auto on the employer’s behalf.
Employment
practices liability insurance - Coverage against allegations of
illegal or discriminatory hiring and firing practices, sexual harassment
of employees, and so on.
Endorsement
- An amendment to a policy form.
Enterprise-wide
risk management - An effort to categorize, measure, and treat all
types of risk that may adversely affect a business. It includes both
traditional hazard risks and other business risks, such as risks posed
by competitors, by economic developments, and natural conditions the
business cannot control, and by general operations.
Environmental
Impairment Liability Insurance, see Pollution liability insurance.
Equipment
floater, see Floater.
ERISA
- An acronym standing for the 1974 Employee Retirement Income Security
Act which regulates certain employee benefit plans.
Errors
and omissions coverage - A type of professional liability insurance,
protecting the insured against claims alleging bodily injury or property
damage caused by the professional or technical incompetence of the insured.
Estimated
premium, see Deposit premium.
Estoppel
- The legal doctrine that a party may be precluded from denying that
certain rights exist if, by behavior or implication that such rights
did, in fact, exist, another party has acted upon this information to
his or her detriment.
Ex
gratia payment - A payment by an insurer to an insured for which
there is no contractual liability. Such payments are sometimes made
as a goodwill gesture if there is the possibility of a misunderstanding
or a mistake.
Examination
under oath - Found in the conditions section of many insurance policies,
the insurer’s right to examine an insured under oath following a loss.
Excess
insurance - Coverage that applies on top of underlying insurance
that is primary, i.e., that pays until its coverage limit is exhausted
at which point the excess coverage takes over.
Excess
or surplus lines market - The range of insurance available through
non-admitted insurers, i.e., insurance companies that are not licensed
in a particular state or territory. Specific provisions of state or
territorial law control placements.
Exclusive
agency system, see Captive agent.
Expense
ratio - The dollar amount that represents acquisition and service
costs, expressed as a percentage of written premium.
Experience
- A record of losses.
Experience
modification - The raising or lowering of premiums under terms of
an experience-rating plan.
Experience
rating - A method of rating that uses past experience to establish
current rates.
Explosion
- An extended coverage peril and currently a covered peril in nearly
every policy of property insurance. The peril remains distinct from
steam boiler explosion, which is covered by boiler & machinery insurance.
Extended
coverage - An early and indivisible "package" of property
insurance perils said to have been devised to make possible the spread
of windstorm insurance beyond the highly exposed coastal and plains
states. For those whose exposure to windstorm was less, "extended
coverage" also encompassed smoke damage, hail, riot and civil commotion,
aircraft and vehicle damage, and explosion insurance. Included here
for historic purposes only since the term, "extended coverage,"
is no longer in general use.
Extended
non-owner liability - A personal auto policy endorsement that provides
broader liability coverage for specifically named individuals. When
attached, it covers: (1) non-owned autos furnished for the regular use
of an insured; (2) use of vehicles to carry persons or property for
a fee; and (3) broader coverage for business use of vehicles.
Extended
period of indemnity - A time for recovery of proved business income
loss after physical property is restored and business reopened. The
30-day extension included in many business income forms may be extended
by endorsement.
Extended
recovery period, see Extended period of indemnity.
Extended
reporting period, see Claims-made coverage.
Extra
expense insurance - Depending on an insured’s requirements, this
coverage may be purchased as a supplement to business income insurance,
applying to expediting expenses that aid in quickly restoring the insured’s
operations after a covered loss; or it can be the primary coverage sustaining
the extra cost of continuing doing business for those insureds who would
find it extremely damaging to fail to meet customer commitments, e.g.,
newspapers, dairies, etc.
