Glossary

An errors and omissions clause is a provision, usually in an obligatory reinsurance treaty, stating that an error or omission in reporting a risk that falls within the automatic reinsurance coverage under such treaty shall not invalidate the liability of the reinsurer on such omitted risk.

Errors and omissions (E&O) insurance protects the insured against liability for committing an error or omission in performance of professional duties.

An error or omission in reporting endorsement is a liberalization of the reporting requirements of property policies when written on a property value reporting basis.

An escape provision allows a contracting party to avoid a limitation on the other party's liability by paying an additional fee.

Essential functions is a term contained in the Americans with Disabilities Act (ADA) of 1990 relating to the need for an employer to accommodate a disabled individual who can perform the essential functions of an employment position.

An estate plan is a plan for the systematic liquidation of one's estate.

Estimated premium is a preliminary figure that may be adjusted to reflect the extent of coverage provided under a given contract.

Estimatics, as the Federal Trade Commission (FTC) defines them, apply commonly available statistical formulas to analyze vehicle claims—methods that may seem arcane and complex to the public, but which are easily recognized in various professions and areas of expertise. Basically, estimatics is the process of determining the cost of the damage to property before it is damaged.

Estoppel is a legal doctrine that precludes a party from contradicting its own previous actions if those actions have been reasonably relied on by another party.

An event is an occurrence that may or may not become a claim.