What it does
EP 03 02 combines a deductible with a co-payment: the insured bears the deductible and then a percentage of the remaining covered loss, per the endorsement. A separate-limits version (EP 03 04) is used with EP 00 02.
It is an endorsement of ISO's stand-alone Employment-Related Practices Liability program and modifies the EPL coverage form (EP 00 01, or EP 00 02 where separate defense and indemnity limits are used). Forms lists show it available in most states, with state-specific versions where noted.
Who needs it
Employers that accept higher retentions for premium savings, or classes where the underwriter wants insured participation.
Quoting and selling notes
- Model a typical settlement plus defense to show the client its total share.
- Check whether the deductible applies to defense costs as well as indemnity on the carrier's version.
- Use EP 03 04 with the separate-limits form.
