EARNED PREMIUM The portion of premium that applies to the expired part of the policy period. Insurance premiums are payable in advance but the insurance company does not fully earn them until the policy period expires. EARTHQUAKE INSURANCE Covers a building and its contents, but includes a large percentage deductible on each. A special policy or endorsement exists because earthquakes are not covered by standard homeowners or most business policies. EMPLOYEE DISHONESTY COVERAGE Covers direct losses and damage to businesses resulting from the dishonest acts of employees. (See FIDELITY BOND) EMPLOYEE RETIREMENT INCOME SECURITY ACT / ERISA Federal legislation that protects employees by establishing minimum standards for private pension and welfare plans. EMPLOYER'S LIABILITY Part B of the workers compensation policy that provides coverage for lawsuits filed by injured employees who, under certain circumstances, can sue under common law. (See EXCLUSIVE REMEDY) EMPLOYMENT PRACTICES LIABILITY COVERAGE Liability insurance for employers that covers wrongful termination, discrimination, or sexual harassment toward the insured's employees or former employees. ENDORSEMENT A written form attached to an insurance policy that alters the policy's coverage, terms, or conditions. Sometimes called a rider. ENVIRONMENTAL IMPAIRMENT LIABILITY COVERAGE A form of insurance designed to cover losses and liabilities arising from damage to property caused by pollution. EXCESS AND SURPLUS LINES Property/casualty coverage that isn't available from insurers licensed by the state (called admitted insurers) and must be purchased from a non-admitted carrier. EXCESS OF LOSS REINSURANCE A contract between an insurer and a reinsurer, whereby the insurer agrees to pay a specified portion of a claim and the reinsurer to pay all or a part of the claim above that amount. EXCLUSION A provision in an insurance policy that eliminates coverage for certain risks, people, property classes, or locations. EXPENSE RATIO Percentage of each premium dollar that goes to insurers' expenses including overhead, marketing, and commissions. EXPERIENCE Record of losses. EXPOSURE Possibility of loss. EXTENDED COVERAGE An endorsement added to an insurance policy, or clause within a policy, that provides additional coverage for risks other than those in a basic policy.