EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE DECLARATIONS PAGE

(August 2019)

0401 Declarations

INTRODUCTION

The Employment-related Practices Liability (ERPL) coverage is a claims-made form. Only claims reported during the policy period, which are alleged to arise from actions occurring after the retroactive date, may be considered for coverage. Therefore, the declarations page must include not only the inception and expiration date, but also the retroactive date.

When ERPL coverage is initially purchased, the inception and retroactive dates are likely to be the same. The goal should be to preserve the retroactive date with each policy renewal. When coverage is moved to a different carrier, the named insured should attempt to negotiate maintaining its existing retroactive date.

The retroactive date should never be left blank. Either an actual date or the word NONE should be entered.

ISO provides a sample Declaration Page as a guide for insurance companies in the development of their own pages.

The Declarations serves the following purposes:

1. It identifies the parties to the contract and establishes the agreement's time frame.

2. It provides important information that is specific to the ERPL coverage.

3. It provides the rating and premium information.

GENERAL INFORMATION

This section includes the following information:

Policy number
Insurance company name
Producer name

IDENTIFICATION INFORMATION

· Named insured(s)

Note: The order in which multiple named insured are listed matters. The first named insured has duties and responsibilities that are not shared with the other named insured. It must pay the premium and will receive any return premium. It is also the only insured that will receive notice of cancellation. If that first named insured is deleted from the policy, the second named insured will automatically move up the list to be the first named insured.

· Mailing address. All correspondence from the insurance company will be mailed to this address so it must be accurate.

POLICY PERIOD INFORMATION

· Effective and expiration date using a month, day and year. Time of day is also required. (The time is typically 12:01 AM standard at the mailing address shown above.)

· Retroactive Date. An actual date or the word “None” must be shown. Leaving this date blank can lead to confusion.

· The Pending or Prior Litigation Date. An actual date or the word “None” must be shown. This date is used to deny coverage for pending suits or claims that were filed prior to the date.

AGREEMENT

In this section, the insurance company agrees to provide the named insured with insurance in the coverage form that applies, subject to its terms and conditions and the premium being paid.

LIMITS OF INSURANCE

· The limit of the insurance. Remember: Defense costs are included in this limit.

· The deductible.

DESCRIPTION OF BUSINESS

This information in this area of the form serves two purposes. The form of business identifies the type of entity that applies to the named insured. The type of entity is referred to in Section II–Who Is an Insured. The listed forms of business are:

Individual
Partnership
Joint Venture
Limited Liability Company
Organization other than the above. This includes a corporation.

Note: If there is more than one named insured, there may be more than one form of business.

CLASSIFICATION AND PREMIUM

The actual rating information for the coverage provided is entered in this section. The accuracy of this information is very important when any classification is subject to audit. The named insured can use the information to anticipate changes at audit due to changes in the estimated premium base. Information in this section may be entered on a separate schedule because of space limitations. The following information is included in this section:

Classification description(s)
Classification description(s)’ corresponding code number(s)
Premium base(s)
Rate
State or other taxes that apply
Total premium subject to audit (if auditable)
The premium is payable at inception or at each anniversary if the policy period is more than one year and the premium is paid in annual installments
Audit period is selected as annually, semi-annually, quarterly, or monthly (if applicable)

FORMS AND ENDORSEMENTS

The numbers of the Forms and Endorsements that apply to the policy or coverage section at the time it is issued must be listed in order to incorporate them into the policy.