**EMPLOYEE BENEFITS LIABILITY**

The policy is amended to include the following:

**Employee Benefits Liability:** The company will indemnify the Insured for ultimate loss which the Insured shall become legally obligated to pay, in excess of applicable limit of the underlying Employee Benefit Liability policy described on account of any claim made against the Insured and caused by negligent error or omission of the Insured or any other person for whose acts the Insured is legally liable in the administration of the Insured's Employee Benefit programs as defined herein.

**Definitions:**

- **"Employee Benefit Programs":** The term "Employee Benefit Program" shall be limited to Group Life Insurance, Group Accident or Health Insurance, Pension Plans, Employee Stock Subscription Plans, Worker's Compensation, Unemployment Insurance, and Security and Disability Benefits.
  
- **"Administration":** The unqualified word "Administration", wherever used, shall mean:
  1. Giving counsel to employees with respect to Employee Benefit Programs;
  2. Interpreting Employee Benefit Programs;
  3. Handling of records in connection with Employee Benefit Programs;
  4. Effecting enrollment of employees under Employee Benefit Programs;

All such acts are authorized by the Named Insured.

**Occurrence:** For the purpose of the coverage afforded by this endorsement, the term "Occurrence" as used in this policy shall mean a claim brought against the Insured during the policy period. If during the policy period the Insured becomes aware of any event which may subsequently give rise to a claim against the Insured by reason of any negligent act, error or omission and shall during the policy give written notice to the Company of such event, any claim which may subsequently be made against the Insured arising out of that negligent act, error, or omission shall be deemed for the purposes of this endorsement to have been made during the policy period.

**Ultimate Net Loss:** The term "Ultimate Net Loss", as defined in the policy, is to include Employee Benefits Liability as defined in paragraph I above.

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