What is an Endorsement?
What is an Endorsement? Surely, you’ve heard of the term but what does this mean for your specific need? Simply put, an endorsement to your policy is just a change. It simply adjusts the terms of the policy without having to buy a new policy. It lets you make changes to your current policy at any time during the term of your policy. Endorsements allow you to add coverages that could have been excluded from your policy, for example being able to perform construction work at an airport or work within 15 feet of a railroad. Maybe you just need additional coverage, say you have a $1,000,000 per occurrence policy and you need to update it to have $5,000,000 per occurrence.
Here are some examples of common endorsements:
Increase the limits of coverage
Adding a class code, this allows you to expand the type of work you are performing
Adjust the states your business operates in
Remove restrictions of work, sometimes policies will specifically exclude places where you can work i.e. museums, hospitals, airports. You would need to endorse the policy to “buy-back” the restriction which would extend coverage when you are working there
Changing the name, address, or ownership of your company, in order to make changes such as these you would request this simple endorsement
Change how the accountability of your policy applies, for example some policies have something called a Waiver of Subrogation, which changes who takes accountability of a claim if multiple parties are involved
Can I add endorsements whenever I want?
Not all the time and you should ask your broker what he or she can do in this regard. Your broker will determine if the endorsement needs to go to underwriting. Some endorsements can take some time to process so make sure you plan ahead. Also, some endorsement can cost money to add. Keep in mind that there may be policies that do not allow certain types of endorsements and your broker will know this or will do the research for you. Always make sure to work with your broker or carrier directly, especially when you first buy the policy, to make sure you’ll be able to customize your policy with endorsements as your needs change. Give your broker a full understanding of what you’ll be doing now, and what you plan on doing in the future so they can advise you of possible restrictions or additional cost when the time does come to make changes to your policy. Lastly always make sure to review any new insurance requirements you may get from a new client, project or licensing entity as they may require you to make changes to satisfy their requirements.
Need help with Endorsements?
We can help you navigate your coverages and make sense of your endorsements.
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