ISO EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE FORM AVAILABLE ENDORSEMENTS AND THEIR USES
(August 2019)
INTRODUCTION
The following listing identifies endorsements available to modify the Insurance Services Office (ISO) Employment-related Practices Liability Coverage Form. The list is arranged by form number and title; it includes a brief explanation of the use of each form. This section does not address state-specific endorsements, changes, or amendments.
Related Article: ISO Employment-related Practices Liability
Endorsements Checklist
FORM NUMBERING
The ten-digit numbering sequence of ISO forms and endorsements has a
very specific meaning.
- The first
two entries are alphabetical characters that indicate the line of
insurance involved. For example, EP denotes Employment-related Practices
Liability
- The next two
digits designate the specific insurance category. Additional detail and
information on these categories is
in the next section below.
- The next two
digits are the form or endorsement number within the insurance category.
- The last
four digits are the edition date of the form or endorsement expressed in
month and year format. These digits are not used in this analysis.
|
EP 00 |
Coverage Forms |
|
EP 01 |
Amendatory Endorsements |
|
EP 03 |
Deductible Endorsements |
|
EP 20 |
Additional Insured Endorsements |
|
EP 21 |
Exclusion Endorsements |
|
EP 28 |
Extended Reporting Period Endorsements |
AMENDATORY ENDORSEMENTS (EP
01)
EP 01 12–Who Is an
Insured - Restricted Coverage for Employees
This endorsement restricts employee as insured status to only supervisory and managerial employees. The covered employees can be either current or former employees.
EP 01 13–Who Is an
Insured - Outside Director, Trustee, Officer or Member
Provides coverage for insured’s employees who serve on boards, are officers of, are trustees, or are members of not- for-profit organizations but only if serving with written permission from the named insured.
EP 01 14–Counsel
Selection
This endorsement gives the insured the right to approve or disapprove the selection of defense counsel. Any disapproval must be reasonable.
EP 01 15–Named
Employee Exclusion
Specifically named individuals can be excluded as insureds using this endorsement. This means that, while the listed persons are not covered for their actions, the named insured would continue to be covered for suits brought against it for supervisory or management negligence relating to the named individuals.
EP 01 17–Liability to
Your Customers or Clients
This endorsement expands coverage to claims brought by the
insured organization’s customers/clients for alleged wrongful acts but only if
due to discrimination.
|
Example: A restaurant employee refuses to seat a family because she believes they are illegal immigrants. The restaurant is sued by the family for discrimination and public humiliation. If this endorsement is attached, the coverage form would respond to the allegation. |
|
EP 01 18–Liability to
Independent Contractors
This endorsement expands coverage to include claims brought
by independent contractors for alleged wrongful acts but only if due to
discrimination.
|
Example: Patty
submits a bid to paint lettering for weekly specials on Fish and Chips, LLC’s
windows. She does not receive the job even though she later finds out her
price was lower and her qualifications better. The difference is that the
winning bidder was a white male while she is a black female. She sues Fish and Chips, LLC who will be defended
for the action if this endorsement is attached. |
EP 01 19–Liability to
Volunteers
This endorsement expands coverage to include claims brought by volunteers for alleged wrongful acts but only if due to discrimination.
EP 01 20–Liability to
Non-Employees
This endorsement expands coverage to claims brought by
non-employees for alleged wrongful acts but only if due to discrimination or harassment.
The triggering act must be work related.
EP 01 21–Nuclear
Energy Liability Exclusion Endorsement (Broad Form)
This is a mandatory form that excludes coverage under the
ERPL for any liability related to nuclear and radioactive incidents. It is
similar to the IL 00 21–Nuclear Energy Liability Exclusion Endorsement which is
mandatory on most of ISO’s liability coverages.
EP 01 33–Amendment of
Consent to Settle
This expansion of coverage softens the Consent to Settle condition. Instead of requiring the named insured to cover the difference between the proposed but declined settlement and the final settlement, the named insured can select a percentage of the settlement for which it is responsible. This option may be attractive to insured entities with a high incentive to aggressively fight ERPL claims.
EP 01 34–Amendment of
Coverage Territory - Worldwide Coverage
The policy’s coverage territory is expanded anywhere in the
world except for countries under
EP 01 35–Amendment of
Coverage Territory - Worldwide Coverage Except For Specified Countries
This is identical to EP 01 34 except that a schedule is provided on which countries are listed that are NOT covered.
EP 01 36–Amendment of
Coverage Territory - Additional Scheduled Countries
The policy coverage territory is expanded to include any country listed in the endorsement schedule. Claims brought anywhere in the world are also covered but only if the suit is brought in the expanded coverage territory. If the insurance company cannot participate in the defense in any of those countries the insured will be reimbursed by the carrier but still subject to the policy limit.
EP 01 37–Malicious
Prosecution Coverage
The ERPL coverage is expanded to include malicious prosecution claims filed by an insured’s employees.
DEDUCTIBLES
(EP 03)
EP 03 01–Co-Payment
Liability Insurance
The deductible provision is replaced by the co-payment provisions in this endorsement. A percentage and a maximum amount of co-payment must be entered in the schedule.
EP 03 02-–Deductible
and Co-Payment Liability Insurance
This endorsement may be added to require that the named insured fulfill its deductible requirement and then still pay a percentage of the remaining amount of the loss subject to the maximum co-payment amount.
ADDITIONAL
INSURED ENDORSEMENTS (EP 20)
EP 20 01–Additional
Insured - Designated Person or Organization
With this endorsement, the named insured may add as
additional insured any designated person or organization. It is generic in
nature and should be used when no other more appropriate additional insured
endorsement is available.
EP 20 02–Additional
Insured - Controlling Interests
This endorsement should be used when there is a need to add a person or an organization having financial control over the named insured as an additional insured.
EP 20 03–Additional
Insured - Volunteers
This endorsement adds volunteers to the Who Is an Insured Section of the policy.
EP 20 04–Additional
Insured - Independent Contractors
This endorsement adds independent contractors to the Who Is an Insured Section of the policy. It does not make them employees.
EXCLUSION
ENDORSEMENTS (EP 21)
EP 21 01–Exclusion -
Designated Ongoing Operation(s)
With this endorsement, the insurer may exclude any claims involving specific operations. The operations are excluded at only the listed location. If no location is listed, the listed operations are excluded wherever they are conducted. This can be used to help make an otherwise unacceptable risk, acceptable.
EXTENDED
REPORTING PERIOD ENDORSEMENTS (EP 28)
EP 28 01–Extended
Reporting Period Endorsement
Because the Employment-related Practices Liability policy is on a claims-made basis, the reporting period may be extended via the purchase of this endorsement. When this endorsement is purchased, the reporting period is extended to three years.
An insured has up to 30 days after the end of the policy period or after any termination, to notify the insurer in writing of the intent to purchase this endorsement.
The charge made for the application of this endorsement is up to the discretion of the insurer; however, parameters are set for the maximum in making this additional premium charge.