Insurance policies often come with fine print that can make a big difference when you need coverage. That’s where endorsements, or riders, step in. These are written changes to an insurance policy that modify its terms, conditions, or coverage. They let you tailor insurance to fit your specific needs, whether that’s adding coverage for a new valuable item or increasing liability limits for a contractor.
Thomas McMillan, a commercial lines underwriter at Central Insurance, explains that endorsements are formal amendments to a policy. They can add or remove protections or exclusions depending on what the policyholder needs and what the insurer can provide. Often, the terms “endorsement” and “rider” mean the same thing, although “rider” is more commonly used in inland marine insurance.
Endorsements don’t always come from the policyholder. Sometimes the insurance company or state regulations require them. Many policies include endorsements the insured didn’t specifically ask for, so it’s important to review these carefully.
For business owners, endorsements are crucial when things change. For example, if a business owner adds a new vehicle or moves to a different location, they would need an endorsement to update their commercial auto or property coverage. Endorsements also cover new risks, like manufacturing a new product or operating a seasonal business. They can increase coverage limits or meet specific contract requirements. They even allow for fine-tuning existing coverage, such as insuring one property separately from others.
Common endorsements for businesses include “additional insured” status, which extends coverage to third parties like property owners or clients. Others include contractor’s errors and omissions (E&O), employment practices liability (EPL), and pollution liability. These risks are often excluded from base policies and must be added with endorsements. Having the right endorsement can be the difference between a claim getting covered or denied.
One of the big advantages of endorsements is their flexibility. They can usually be added or removed anytime, not just when a policy renews. However, some changes might need approval from underwriters or start in the next policy period. McMillan shares that proper timing and accuracy with endorsements have saved claims from being denied, especially when a contractor added E&O coverage mid-term before facing a claim.
When asking for an endorsement, it’s a good idea to work closely with an insurance agent to make sure the details are right. McMillan recommends reviewing any endorsements carefully to confirm they match your request, especially if they come from contractual needs.
Central Insurance prides itself on quick service and expert underwriting when handling endorsements. Their team helps clients and agents by reviewing contracts and making sure insurance policies meet all requirements. If you’re not sure whether you need an endorsement, McMillan encourages talking to a local Central agent who can help figure out the right coverage for your situation.
In short, endorsements are a powerful tool to customize your insurance. They fill gaps, add coverage, and provide peace of mind as your business or personal needs change. For more information, reaching out to a qualified insurance agent is a smart first step.