What is an Insurance Endorsement?

When it comes to insurance, the fine print matters—and that’s where endorsements come in. Also known as riders, endorsements are written amendments to your insurance policy that adjust its terms, conditions, coverages, or exclusions. 

Whether you’re a homeowner adding coverage for a valuable item or a contractor increasing your liability limits, endorsements allow you to customize insurance to your specific needs.

According to Thomas McMillan, commercial lines staff underwriter at Central Insurance, “an endorsement is a written change to an insurance policy that modifies its terms or coverages. It can specify different protections or exclusions based on what the policyholder requires and the insurance company can offer.”

“They’re a formal amendment that becomes part of the policy contract,” McMillan explains. “And yes, the terms ‘endorsement’ and ‘rider’ are often used interchangeably—though ‘rider’ is more common in inland marine policies.”

Who Decides on Insurance Endorsements?

It’s important to note that not all endorsements are initiated by the policyholder. Some are requested directly by the insured, while others are issued at the discretion of the insurance company or required by state Departments of Insurance or statutes. In fact, most insurance policies contain endorsements that the policyholder did not specifically request, which is why it’s critical to review and understand them carefully.

Many business owners assume their base insurance policy offers more coverage protection than it does. For instance, exposures such as contractor’s errors & omissions (E&O), pollution liability, and employment practices liability (EPL) are commonly excluded and must be added via an endorsement.

Why Might You Need an Insurance Endorsement?

There are many reasons someone might need to add an endorsement to their policy. For businesses, endorsements are often required when operations change or new risks arise.

“Say you’re a business owner with five vehicles and you purchase a sixth. You’d need an endorsement to add that vehicle to your commercial auto policy,” McMillan explains. “Or, if you move locations, you’d need to update your property coverage.”

Other common reasons include:

Endorsements can also fine-tune existing coverage. “Imagine you own four hotels. You might want to exclude one from a specific policy and insure it separately—that’s all done via endorsement,” McMillan says.

What are Common Insurance Endorsements for Businesses?

From commercial property to general liability to inland marine, endorsements are available for nearly every line of coverage.

Some of the most common insurance endorsements for businesses include:

• Additional insured status extends coverage to a third party, such as a property owner, client, or general contractor, who may be held liable for actions performed by the named insured. It’s often required in contracts to ensure shared protection.
• Increasing umbrella limits on your umbrella policy provides added financial protection beyond the base policies. This is especially useful for businesses with higher risk exposure or contractually required limits.
• Contractor’s errors and omissions (E&O) covers claims arising from professional mistakes, design flaws, or project mismanagement that result in financial loss.
• Employment practices liability (EPL) helps protect businesses from claims made by employees related to discrimination, wrongful termination, harassment, or other employment-related issues.
• Pollution liability offers coverage for cleanup costs, bodily injury, or property damage caused by pollutants released during business operations. It’s critical for contractors or manufacturers working with hazardous materials.

These exposures are often excluded from base policies and must be added intentionally. “Many insureds assume coverage is included, but it’s not,” McMillan cautions. “That’s why having the right endorsement can make the difference in whether a claim is covered.”

Timing and Accuracy of Insurance Endorsements Matter

One of the biggest benefits of endorsements is their flexibility. 

“They can generally be added or removed at any time, not just at renewal,” McMillan notes. However, some changes may be subject to underwriting approval or deferred until the next policy period.

He emphasizes that endorsements have directly impacted claim outcomes—such as when a contractor added E&O mid-term and later faced a claim that would have otherwise been denied. These examples underscore the importance of the right endorsement at the right time.

Remember: When requesting an endorsement, it’s recommended to work closely with your local Central agent to ensure the details are accurate. McMillan advises policyholders review any endorsement they receive and verify it matches what they asked for, especially when the change stems from a contractual requirement.

The Central Difference

At Central, insurance endorsements are more than just paperwork—they’re a commitment to responsive, informed service.

“Our value lies in two areas,” McMillan says. “First, our customer service and speed—we process endorsements quickly. Second, our underwriting specialization. We have the coverage experts in place to make sure your needs are truly understood.”

That expertise helps agents and clients alike. “I’ve seen our underwriters read through contracts and realize the policy doesn’t comply. We’ll step in and recommend exactly what’s needed. That’s the kind of partnership we strive for.”

If you’re unsure whether you need an endorsement, McMillan’s advice is simple: 

“Talk to your agent. They’re your coverage expert and your advocate. They’ll help you evaluate your exposures and can ensure your policy reflects what you actually need.”To learn more about insurance endorsements customized to your business operations, reach out to your local independent Central agent today.