Glossary

Exterior insulation and finish systems (EIFS) are multilayered exterior cladding systems designed to provide high energy efficiency in both residential and commercial buildings, such as synthetic stucco. Typically, EIFS include insulation board that is secured to the exterior wall surface with a specially formulated adhesive, a water-resistant base coat that is applied on top of the insulation, and a finish coat. Early versions of EIFS, commonly referred to as "barrier EIFS," created a barrier that resulted in moisture getting trapped and mold and wood rot. Many insurers responded by attaching a comprehensive EIFS exclusion to contractors' liability policies. Modern EIFS, commonly referred to as "EIFS with drainage," add a feature with the intent to allow moisture to drain. EIFS are widely used, and many insurers may be willing to amend or remove the exclusion with respect to drainable EIFS but will likely want to see evidence that the contractor is following proper installation practices and utilizing acceptable materials.

Extortion Coverage Form G was an Insurance Services Office, Inc. (ISO), form (CR 00 08) that insured against loss of money, securities, and other property surrendered as a result of a threat of harm to the insured, an employee, a relative, or invitee being held captive. This form has been replaced by the Extortion—Commercial Entities Endorsement (CR 04 03) to an ISO commercial crime policy. Broader coverage can often be obtained by purchasing a separate kidnap and ransom policy from an insurer specializing in this field.

The extortion expense coverage found in some professional liability technology policies covers the insured for reasonable and necessary expenses incurred as a result of a network extortion threat. This would include, for example, "ransom" payments to those thought to be behind the threat. All payments must be made with the insured's written consent.

Extracontractual damages are damages that are in addition to or outside of a contract of insurance. They are awarded in "bad faith" claims against insurance companies. They are a form of punitive damages, intended to punish extreme insurer conduct. Extracontractual damage awards most frequently arise from unfair claims handling practices (e.g., unjust denial of coverage or failure to settle a claim within policy limits).

Extracontractual obligations (ECO) are the obligations or requirements under a policy that the insurer pay certain losses or expenses not arising from the insuring agreement but from externally imposed obligations—for example, fines from a court or regulatory body. If ECOs are covered under a reinsurance agreement, the reinsurer pays punitive damages imposed on the insurer.

Extraterritorial coverage is the extension of state workers compensation law to provide benefits for workers hired in the state but injured while working in another state. There is usually a maximum placed on the amount of time an employee can spend outside the state of hire and still file a claim in that state. This term is also used in international insurance to denote coverage for work-related injuries occurring outside the boundaries of the country of hire.

Extra expense coverage is commercial property insurance that pays for additional costs in excess of normal operating expenses that an organization incurs to continue operations while its property is being repaired or replaced after having been damaged by a covered cause of loss. Extra expense coverage can be purchased in addition to or instead of business income coverage, depending on the needs of the organization. There are two Insurance Services Office, Inc. (ISO), commercial property forms that provide extra expense coverage: the Business Income and Extra Expense Coverage Form (CP 00 30) and the Extra Expense Coverage Form (CP 00 50).

Extra percentage tables refer to a form of substandard rating using mortality or morbidity tables for certain impaired health conditions.

An extra premium charge add to the premium for a class rate because of extra hazardous loss exposures.

Extremely hazardous substances refer to a list of chemicals maintained by the Environmental Protection Agency (EPA) that the EPA has identified as toxic and listed under the Superfund Amendments and Reauthorization Act (SARA) of 1986 Title III.