Adding Endorsements to Your Small Business Insurance

Is your standard commercial policy sufficient to completely cover your needs? If not, you can add commercial insurance endorsements to modify your coverage. If you own a small business, the necessity of commercial insurance cannot be overstated. When you consider the complications and uncertainties of the business world, the need for sufficient protection for what you’ve labored for becomes apparent. Depending on the area of your specialty and the associated risks, you may need more to safeguard your business from those risks.

Insurance endorsements, also called floaters or riders, allow you to modify your coverage limits, expand coverage for certain property, or extend protection to cover additional risks. This usually permits you to either add, delete, or exclude certain coverage from your policy to better fit your needs by protecting key risks, persons, or entities.

Here are some commercial insurance endorsements that you can add to your commercial insurance policy.

Business Property

This endorsement helps provide additional protection to your business property. It also helps protect business-related items in-store, including products you are planning to sell.

Blanket Additional Insured

This commercial insurance endorsement allows you to automatically provide coverage to any party to whom you are contractually obliged to cover. Your clients may need you to name them as the additional insured party so that your coverage extends to them in case of any accidents or mishaps with complicated causes. This would safeguard that entity against third-party lawsuits or commercial property damage.

Waiver of Subrogation

A waiver of subrogation is a commercial insurance endorsement that prohibits an insurance carrier from recovering the money they paid on a claim from a negligent third party.

Extended Reporting Period

This commercial insurance endorsement alters a claims-made professional liability (errors and omissions insurance) policy coverage enabling you to can report claims even after the expiration date of your insurance policy has passed.

Prior Acts Coverage

Prior acts coverage is a commercial insurance endorsement that alters a claims-made liability policy to safeguard you against monetary damages that happened before you purchased your current policy.

Equipment Breakdown/Business Interruption

This is a common commercial insurance endorsement that modifies your commercial property insurance policy to enable it to generate funds to repair or replace machinery or equipment that has sustained an unexpected and accidental malfunction. This can include incidents of short-circuit, loss of air pressure, power surges, etc. It helps cover lost income and expenses resulting from property damage or loss, including salaries, taxes, rents, and net profits that would have otherwise been obtained when the equipment was fully functional.

Tenant’s Coverage

Tenant’s coverage is a commercial insurance endorsement that modifies your policy to cover the monetary damages for any renovations you make to your rental area and losses to the building caused due to the negligence of your employees.

Identity Theft Restoration

This floater modifies your policy to reimburse you for the costs such as legal fees, lost wages, or costs to mail documents incurred if you are the victim of identity theft.

Primary & Non-Contributory Language

Another common endorsement is primary & non-contributory language. Clients require this endorsement because it ensures that your policy must pay before other applicable policies and without seeking any contribution from other insurance policies that also claim to be primary. For example, if there were a copyright infringement claim, your general liability policy would payout before the claim would spread to the client’s corporate policy.

How to Add an Insurance Endorsement

You can apply for an insurance endorsement when you are purchasing a new policy or at any point during your present coverage policy period. You can also request one when your policy comes up for renewal. Speak with an agent to get started.

Adding an insured endorsement solidifies protection against a specific risk. The experts at Pittman Insurance Group, LLC are available to discuss and clarify any questions you might have about commercial insurance endorsements. Contact us right now to get answers from our experienced representatives.

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