Glossary

Environmental stop loss insurance reduces the risk of pollution cleanup cost overruns by providing insurance coverage for excess cleanup costs when the actual cost exceeds the original estimate by more than some established percentage, such as 130 percent. That part of the percentage that exceeds 100 percent represents a built-in "buffer" before coverage is triggered under the policy. The size of the buffer will depend on the underwriter's confidence in the estimate.

The Equal Employment Opportunity Commission (EEOC) enforces the principal federal statutes prohibiting employment discrimination. The EEOC was established by Title VII of the Civil Rights Act of 1964 and began operating July 2, 1965, including Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Equal Pay Act of 1963, Title I of the Americans with Disabilities Act (ADA) of 1990, the Civil Rights Act of 1991, and section 501 of the Rehabilitation Act of 1973. Individuals who believe they have been discriminated against in employment can file administrative charges, which the EEOC investigates and then attempts to reach a voluntary resolution between the charging party and the respondent if it finds that discrimination has occurred. If unable to do so, the EEOC may sue in federal court. The commission also issues regulatory and other forms of guidance interpreting the laws it enforces.

The Equal Pay Act of 1963 is a federal law prohibiting pay discrimination against employees because of their gender. The Act compels businesses to pay equal wages to employees performing substantially equal work, regardless of the sex of the individual employees. Pay differentials may be based on merit, seniority, or any lawful factor other than sex. The Equal Pay Act applies to all businesses regardless of the number of employees. Inequalities in pay between men and women for performance of "substantially equal jobs" are prohibited, unless the differences are due to a factor other than sex, such as a seniority system or merit system. Claims alleging violation of the Equal Pay Act are covered by employment practices liability insurance (EPLI) policies.

Equipment breakdown insurance is coverage for loss due to mechanical or electrical breakdown of nearly any type of equipment, including photocopiers and computers. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown. Resulting business income and extra expense loss is often covered as well. Equipment breakdown insurance is increasingly replacing traditional boiler and machinery (BM) insurance, in part simply because the title is more descriptive of the coverage provided. Also, today's equipment breakdown policies typically provide slightly broader coverage than traditional BM policies, and they usually do not use the specialized terminology found in traditional BM policies.

An equipment floater is property insurance covering equipment that is often moved from place to place. It is a form of inland marine insurance.

Equitable estoppel is a judicial doctrine by which a litigant may be prevented, or "stopped," from raising an argument or a legal defense in a lawsuit. Generally, the elements of equitable estoppel are an act or omission on the part of the party to be estopped, reliance on that act or omission by the other party, and circumstances that would make it unfair if the party to be estopped is allowed to raise the argument or legal defense. For example, equitable estoppel may be applied to an insurer that stalls the investigation of a claim, indicates to the insured that the claim will be paid, convinces the insured not to sue the insurer, and then denies the claim based on a 1-year time-to-sue limitation in the policy. Since the insurer in this example persuaded the insured not to file suit in a timely manner, and the insured relied on the insurer's overtures, it would be unfair to allow the insurer to raise the 1-year time-to-sue limitation in the policy. Out of fairness, the insurer may be equitably estopped from raising its time-to-sue limitation as a defense to the claim.

Equitable subrogation is the right of subrogation granted under common law when one party has made a payment on behalf of another and becomes entitled to whatever recovery rights the other party has against a responsible third party.

Equity stripping is a type of home equity loan in which a disproportionate percentage of minority and elderly homeowners were saddled with loans requiring high fees and high interest rates. Such loans, which were common from 2003 to 2008, effectively reduced borrowers' home equity positions to zero and were clearly unaffordable, given these borrowers' relatively limited incomes. In response to the widespread use of such loans, a number of consumer organizations, in conjunction with various state attorneys general, brought lawsuits against the major banks and their directors and officers who had perpetrated equity stripping. The suits were based on the theory that banks, along with their directors and officers, encouraged and assisted lenders in what amounted to predatory lending schemes, knowing they could package and sell these loans in the form of mortgage-backed bonds and, at the same time, remove such loans from their own financial statements. A number of these suits were settled, with payments made to affected homeowners.

Erection all risks (EAR) insurance covers losses arising out of the erection and installation of machinery, plant and steel structures, including physical damage to the project, equipment and machinery, and liability for third-party bodily injury or property damage arising out of these operations. It is used primarily on construction projects outside the United States. Covered parties include the general contractor, subcontractors, and in some cases suppliers and manufacturers of equipment. Examples of the types of projects for which erection all risks coverage is typically purchased include power plants, manufacturing and fabrication facilities, water and wastewater treatment facilities, and telecommunications centers (particularly where the erection of signal towers is involved). Some insurers combine erection all risks and contractors all risks coverages into one form. Although these terms are sometimes used interchangeably, there are some substantive differences. Coverage for delay in start-up costs is typically an optional coverage.

Ergonomics involves the study of physical forces that impact people who perform particular tasks in a set environment. By designing the work environment with the tasks and people in mind, ergonomics will assist in the process of developing and implementing safe and productive work settings. This process is frequently used to establish well-designed computer workstations and to improve factory and material-handling tasks.