ISO EMPLOYMENT-RELATED PRACTICES LIABILITY COVERAGE FORM AVAILABLE ENDORSEMENTS AND THEIR USES

(August 2022)

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 group of young men because of how they are dressed. The employee believes they will skip out on their bill. The restaurant is sued by the group 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.

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 United States trade or economic sanction. 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 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.