Business Insurance Glossary

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Earned exposures

The portion of the total amount of exposure (risk) corresponding to the coverage provided during a given time period.

Earned premiums

The portion of the total premium amount corresponding to the coverage provided during a given time period.

Earthquake

A sudden shift or movement in the tectonic plate in the Earth’s crust.  On the surface, this is manifested by a moving and shaking of the ground, and can be massively damaging to poorly built structures.

Electronic data processing coverage

Specialized type of insurance designed to protect your business from additional expense or loss of income due to the failure of your computer equipment, data systems, information storage media and expenses or income loss related to the destruction of hardware or software.

Employee benefit plan liability coverage

Protects an employer against claims by employees or former employees resulting from negligent acts or omissions in the administration of the company's employee benefits programs.

Employee dishonesty coverage

Employee dishonesty coverage protects an employer from financial loss due to the fraudulent activities of one or more employees. The coverage includes protection for loss of money, securities, and other property of the insured.

Some schedule policies are still available, but the majority are written on a blanket basis. This provides coverage for all employees, subject to policy definition.
The limit of liability is per loss and is applied on an occurrence basis. All acts involving the same employee or group of employees is considered one occurrence.

Endorsement

An endorsement is a modification to your policy. It can add coverage, modify it, reduce, or even remove coverage. Reasons to make changes to your policy include changing the name of your business, moving locations, changing your deductibles, or including an Additional Insured.

Evidence of insurability

Proof that a person is an insurable risk.

Exclusion

A restriction in your insurance reducing and/or removing coverage for certain potential events, persons, property or locations.

Experience rating

A method of calculating group insurance premium rates by which the insurer considers the particular group’s prior claims and expense experience. 

Expiration date

Indicates the date when your insurance coverage ends. The renewal policy (or new policy) typically starts on this date.