What is an insurance endorsement?
The British Insurance Brokers Association (BIBA) define an insurance endorsement as the ‘term used to describe an amendment to a policy document’
Effectively, an insurance endorsement is a record of any changes which have been made to the original insurance policy terms. These variations to the standard terms and conditions of an insurance policy will typically be negotiated and agreed between the insured and insurer. But can sometimes be stipulated by the insurer.
Insurance endorsements will often exist to
- Restrict cover
- Extend cover
- Exclude cover
- Provide clarity over cover
Insurance endorsements can be put in place at the point which the policy is taken out. Or during the term of the policy.
Why might you need an insurance endorsement?
You may want to consider an insurance endorsement if you have very specific requirements. You may have specific possessions for example which may not be covered under standard policy terms and conditions. Or there may be specific situations for which you require cover which are not covered by the standard policy wording.
Be mindful that whilst you can discuss these additional requirements with your insurer, or insurance broker, it does not necessarily mean that your insurer will be willing or able to provide the cover.
Adding additional cover may also carry an additional premium. And require you to meet very strict criteria (e.g., storing items in a secure method specified by your insurer).
But in many cases in the UK, insurance endorsements are put in place to restrict or exclude certain types of cover. This can be especially common in certain industries. Vape insurance is one that immediately jumps to mind with many restrictions placed on cover offered.
What insurance endorsements can you consider when taking out business insurance?
When it comes to the types of insurance endorsement that you may want to consider when taking out your business insurance, this will very much depend on your individual business needs.
It will be important to have a very firm grasp of the cover that you both require and the cover that is provided by the insurance policy you intend to purchase. Before an endorsement is added to your policy you’ll want to understand (amongst other areas)
- if/how it changes the cover provided
- if/how it changes your obligations under the policy
This will be especially important if insurance endorsements are put in place which restrict or exclude cover. The last thing that you want as a business owner is to believe that you have cover that in actual fact you do not.
Working with an insurance broker such as Anthony Jones can help you gain this understanding of the insurance that you require. Our business insurance experts take the time to get to know you and your business to ensure that insurance you take out is unique and tailored to your exact needs. We also work with you on areas of risk and management of risk.
The type of insurance that your business requires will depend on a wide range of factors. But we understand just how important it is to get it right. That’s why the support we give to our small business customers with risk management and insurance advice is an invaluable part of the service we provide. Get in touch with our business insurance experts today on 020 8290 9080 or email us at business@anthonyjones.com.
