Glossary

An employee assistance program (EAP) is a compendium of services provided by the employer for the employee to address the treatment as well as prevention of mental and addictive behavioral problems. Other issues that can create stress in the life of the employee, such as interpersonal and familial relationships, are also included in the scope of the EAP. The major purpose of the EAP is to assist the employee to maintain a good mental outlook and therefore be a highly productive and well-adjusted worker.

The Employee as Lessor Endorsement (CA 99 47) is a commercial auto endorsement that may be used to afford coverage on a primary basis on an auto that is owned by an employee of the named insured and is described on the endorsement. The described auto will be considered a covered auto the named insured owns and not a covered auto the named insured hires, borrows, or leases. The difference is important because, under the CA 99 47 endorsement, the policy would provide primary coverage for those vehicles. An unendorsed commercial auto policy would only provide excess coverage.

Employee benefits liability is the liability of an employer for an error or omission in the administration of an employee benefit program, such as failure to advise employees of benefit programs. Coverage of this exposure is usually provided by endorsement to the general liability policy but may also be provided by a fiduciary liability policy.

Employee benefit programs refer to benefits, such as health and life insurance, provided to employees at the workplace, usually paid for totally or in part by the employer.

Employee dishonesty coverage is insurance for employee theft of money, securities, or property, written with a per loss limit, a per employee limit, or a per position limit. Employee dishonesty coverage is one of the key coverages provided in a commercial crime policy.

The Employee Hired Autos Endorsement (CA 20 54) broadens physical damage coverage provided to employees of the named insured who hire or rent cars in their own names in the furtherance of their employer's business. It changes the liability section's "who is an insured" provision to include such employees and makes it clear that for physical damage coverage such autos are treated the same as other hired autos—that is, deemed to be owned covered autos and thus primary instead of excess. (The endorsement requires that hired auto coverage for physical damage and liability be in place.)

Employee leasing is a permanent staffing method under which an employee leasing company (sometimes called a professional employer organization (PEO) or a labor contractor) provides all or most of its client's employees. The potential benefits associated with this type of arrangement include reduced administrative costs, access to risk management services like safety and loss control, and higher-quality, more cost-effective employee benefits.

An employee leasing company is an organization whose business it is to furnish workers to another entity (usually referred to as the client company) on a long-term basis. Organizations in this industry are referred to by a number of descriptive names. In addition to employee leasing company, commonly used labels include labor contractor and professional employer organization (PEO). The popularity of this type of staffing solution is driven by potential benefits to the client that include reduced administrative costs, access to risk management services like safety and loss control, and higher-quality, more cost-effective employee benefits.

Employee pension benefit plans are created by an employer, a union, or both to provide for retirement income or the deferral of income (e.g., 401(k) plans, "traditional" defined benefit pension plans). These plans are distinguished from employee welfare benefit plans like employer-provided health, life, and disability insurance plans that address the non-income-related aspects of employee benefits.

The Employee Retirement Income Security Act (ERISA) involves liability for the exposure arising out of the responsibility as an officer or fiduciary of a company for the handling of pension funding and other employee benefit plans. Should the fiduciary responsibility be breached, the individual is personally liable for the loss. This resulting exposure is usually excluded from the general liability policy, even when employee benefits liability coverage is purchased. However, coverage may be purchased in the form of a separate fiduciary liability policy.