Employment Practices Liability Insurance Glossary Of Terms
Claims Made Coverage:
A policy that provides liability coverage only if a written claim is made during the policy period or during any defined extended reporting period. (see Tail Coverage).
Estoppel:
A legal term used when a person loses the right to deny that a specific condition exists by having previously acted in such a way as to convince others that the condition does exist.
Hostile Environment:
Harassment in the workplace that is severe or pervasive, such as bothersome attentions or persistent sexual remarks. (Compare with Quid Pro Quo).
Occurrence Coverage:
A policy form that provides liability coverage only for injury or damage that occurs during the policy period, regardless of when the claim is actually made. (See Claims Made Coverage)
Prior Acts:
An occurrence that happened prior to the inception of an insurance policy.
Quid Pro Quo Sexual Harassment:
Sexual harassment in which threats of retaliation are used against the harassed employee.
Retroactive Date:
The date on a claims-made form that begins the period of coverage. If there is a retroactive date, any claim made during the policy period will not be covered if the loss occurred before the retroactive date.
Sexual Harassment:
Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct a sexual nature constitute sexual harassment when submission to or rejection of this conduct explicitly or implicitly affects an individual's employment, unreasonably interferes with an individual's work performance or creates an intimidating, hostile or offensive work environment.
Tail Coverage:
Also referred to as Extended Reporting Period (ERP), Maxi Tail or Full Tail. A specified period of time during which claims can be submitted after expiration of the claims made policy.
Tort:
A private wrongful act committed against an individual, which results in a legal liability and is settled in a civil court.