Glossary

An entity buy-sell agreement is an agreement between a partnership or a corporation, as an entity, and the owners (partners or stockholders) that, upon the death of an owner, the company (partnership) will purchase the deceased owner's share of the business.

Entity coverage affords direct coverage of the insured organization under a directors and officers (D&O) liability policy.

Entity securities coverage is the section of a directors and officers (D&O) liability insurance policy covering the corporate entity when claims are made against the entity in conjunction with securities it has issued.

An environmental assessment is an analysis prepared pursuant to the National Environmental Policy Act (NEPA) to determine whether a federal action would significantly affect the environment and, thus, require a more detailed environmental impact statement.

An environmental audit is an independent assessment of the current status of a party's compliance with applicable environmental requirements or of a party's environmental compliance policies, practices, and controls.

An environmental impact statement is a document required of federal agencies by the National Environmental Policy Act (NEPA) for major projects or legislative proposals significantly affecting the environment.

Environmental impairment liability (EIL) insurance is a specialized insurance policy that covers liability and sometimes cleanup costs associated with pollution.

An environmental liability buyout is when a third-party contractually assumes the ownership of the known environmental conditions in a given property.

Environmental Monitoring and Assessment Program (EMAP) data is the information collected under the auspices of the EMAP.

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.