Skip Navigation Links IRMI Online > Glossary of Insurance & Risk Management Terms > Terms > E > extracontractual obligations (ECO)
Warning! You are currently not signed in. Any products you have purchased will not be displayed until you Sign In

extracontractual obligations (ECO)

The requirement 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.

Navigation

Social Media