FOR LAWYERS

What is an Endorsement?

Insurance endorsements, also known as riders, modify the terms or scope of an existing policy’s coverage. Simply put, any modification or addition to policy coverage without the full renewal or cancellation of a policy is known as an endorsement. These legally binding changes to the insurance contract can be issued right after purchasing the policy, anytime during the benefit period, or whenever you choose to renew the policy.

Unless the endorsement specifically states it is temporary, they are enforced until the end of the policy.

Key Takeaways

  • An insurance endorsement, also called a rider, is a modification to your insurance policy that can adjust your coverage.
  • Endorsements are legally binding and typically remain valid until the end of the policy term.
  • State laws require some endorsements, but others are voluntary.
  • Standard endorsements are pre-drafted documents issued by an insurance organization while non-standard endorsements are written by the insurance company.

Types of Endorsements

There are many different types of changes that can be made to an existing insurance policy. Let’s take a closer look at some of the most common types of endorsements:

  • Adding coverage: By adding an endorsement, you can increase your coverage to your desired amount.
  • Third party protection: This endorsement will add another person other than you to your insurance policy, such as a subcontractor.
  • Additional locations: You can use endorsements to add or remove locations in an insurance policy if you own multiple properties.
  • Prior acts coverage: Endorsements can modify claims-made liability policies so that they cover events that happened before the current policy took effect.
  • Administrative reasons: Occasionally, endorsements are added for administrative purposes such as changing a policyholder or insurer’s name or address.

Mandatory vs Voluntary Endorsements

A voluntary endorsement is added to an insurance policy at the request of the policyholder or the insurer. For example, assume your insurance policy covers damage or theft of up to $2,000. If you recently purchased jewelry worth $3,000, you may want to add an endorsement that will provide additional coverage for your property. Alternatively, an insurer may draft an endorsement that prevents them from paying for claims related to a certain risk.

Mandatory endorsements, on the other hand, are enforced by the law. Some mandatory endorsements restrict the insurer’s right to cancel a policy. This might require the insurer to give the insured 60 days notice before terminating a policy.

Standard vs Non-Standard Endorsements

Standard endorsements are pre-drafted templates created by insurance advisory organizations and used by various insurers. Insurers often prefer standard endorsements because they are readily available and have been interpreted by courts in the past. 

Non-standard endorsements are issued independently by the insurance company. They are often created by modifying already-existing standard endorsements to provide customized coverage. A manuscript endorsement is a non-standard endorsement that is created for a single policy.

Bottom Line

Endorsements are an important component of an insurance policy, but their interpretation can result in a number of legal issues. You might want to seek legal advice if you are considering adding an endorsement to your current policy, or if you have a dispute with your insurance company about the interpretation of an endorsement.

Ask a Lawyer

Ask your own question and get advice from expert attorneys
Ask Question

Featured Medical Malpractice Lawyers

The Thompson Law Firm, LLC

41 years in practice
Adoption, Birth Injury, Child Custody, Child Support, Criminal Defense
View Profile

The Law Offices of Craig J. Brown P.A.

21 years in practice
Auto Accidents, Criminal Defense, Domestic Violence, DUI Law, Medical Malpractice
View Profile

Leppla Associates, Ltd

44 years in practice
Auto Accidents, Medical Malpractice, Personal Injury
View Profile

Richardson Law Firm P.C.

12 years in practice
Hair Relaxers Lawsuit, Mass Tort, Personal Injury, Rideshare Lawsuits, Tepezza Lawsuit
View Profile

Adam Rieth - Injury Attorney

10 years in practice
Auto Accidents, Brain Injury, Motorcycle Accidents, Personal Injury, Truck Accidents
View Profile

Vanguard Attorneys

12 years in practice
Auto Accidents, Motorcycle Accidents, Personal Injury, Truck Accidents, Wrongful Death
View Profile

Contact AttorneyAtLaw.com

Are you looking for an attorney? Do you have questions about a legal case you are facing? Contact us now and we will put you in touch with a lawyer for free.
Attorney At Law is changing how clients connect with lawyers. By providing an innovative platform to lawyers who want to expand their practice’s reach, AAL is bringing law practices into the future.
6142 Innovation Way
Carlsbad, California 92009
© 2023 Attorney at Law | All rights reserved
Some of the content of this website may be considered attorney advertising under the rules of certain jurisdictions. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.
crossmenuchevron-upchevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram