Earned Premium: That portion of a premium for which the policy protection has already
been given during the now-expired portion of the policy term.

Effective Date: Also called "inception date." The date the insurance policy's coverage goes
into effect.

Electronic Data Processing Coverage (EDP): Specialized type of insurance designed to
cover computer equipment, data systems, information storage media, and expense or
income losses related to EDP losses.

Employers Liability Insurance: Coverage against common law liability of an employer for
accidents to employees, as distinguished from liability imposed by workers compensation

Employers Non-Ownership Automobile Liability: (1) Liability arising out of the operation
of an automobile not owned by the insured. This frequently results when an employee uses
his own personal car in the business activities of the insured; (2) Insurance coverage for
the liability exposure mentioned above.

Endorsement: An alteration in an insurance policy. A clause added to an insurance policy
that changes the coverage.

Exclusion: That which is not covered by the insurance as outlined in the policy.  An
insurance policy provision that excludes certain persons, events, conditions or situations
from coverage as outlined in the policy.

Experience: The loss record of an insured, class of coverage, or of an insurance company.

Exposure: (1) State of being subject to the possibility of loss; (2) extent of risk as
measured by payroll, gate receipts, area, or otherwise; (3) possibility of loss to a risk being
caused by its surroundings.

Extended Coverage Endorsement: A specific endorsement attached to a Standard Fire
policy, usually providing coverage of windstorm, hail, explosion, riot, riot attending civil
strike, aircraft, vehicular damage, smoke and civil commotion.

Extended Reporting Period (ERP): A period allowed for making claims after expiration of a
"claims made" liability policy. Also known as a "tail."

The above information is for general informational purposes only and is not to be
construed as a recommendation or advice in any way shape or form.
Copyright © 2016 Stephen W. Gersh Insurance Agency, Inc.  All rights reserved.
A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z