Added Endorsement Options for General Liability Insurance

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Image: | Added Endorsement Options for General Liability Insurance  | If you own or operate a business, you know that liabilities can loom around every corner. From workers’ compensation to commercial auto insurance, there are numerous insurance policies you need to keep your business afloat should an accident occur or someone file a lawsuit against you. 

One of the most common forms of business insurance is commercial general liability, also known as CGL insurance. While a CGL policy covers a wide range of liabilities, it doesn’t account for all the risks you take on as a business owner. In addition to having other forms of business insurance, many employers choose to add endorsements to their general liability plans. 

What are Insurance Policy Endorsements?

Insurance policy endorsements, also known as riders, are documents attached to an insurance contract that amend the original policy. You can add an endorsement to your plan when you sign up for coverage or at any point after. Most policy endorsements serve one of the following purposes: 

  • Removing Coverage– Endorsements can be used to exclude any such coverage previously included in the policy. For example, an endorsement can be added to CGL to terminate the range of bodily harm caused due to exposure to hazardous chemicals.
  • Adding Coverage– Endorsements can also add coverage and or clauses to a policy. 
  • Modifying a Coverage– Endorsements can also alter an existing coverage of a policy. For example, you could change coverage to a blanket limit that restricts the compensation amount one can receive at a single location.
  • To Edit a Coverage– These endorsements make editorial changes to a policy coverage in case of misspellings, incorrect punctuation, and other mistakes. 
  • Administrative Modifications– You can also use endorsements to make organizational changes to a policy like changing an insurer’s phone number or adding a named insured.  

What’s Covered By CGL?

Many businesses, large and small, have commercial general liability insurance to protect the business from lawsuits financially. CGL policies help pay for the following: 

  • Property Damage– If your business causes damage to another person or company’s property, your CGL insurance can cover the cost of claims against you as well as legal defense expenses. 
  • Bodily Harm– If a customer, client, vendor, or another third-party sustains an injury on your business property and they take you to court, your insurance will cover their medical expenses and your legal costs. 
  • Reputational Damage and Other Advertising Injuries– If a business experiences damage to its reputation or brand because of your words or actions, they may file a lawsuit for compensation. Apart from this, advertising injuries also include copyright infringement, slander, and libel. Again, CGL insurance helps pay for court expenses. 

Common CGL Insurance Endorsements

As previously mentioned, general liability insurance does leave your business open to certain liabilities, even if you have other forms of business insurance like commercial property liability and professional liability policies. It’s common for businesses to add endorsements to their CGL policies under the following circumstances: 

  • Additional Insured Endorsement–  Adding an additional insured endorsement to your policy can extend coverage to individuals or groups who weren’t initially included in the policy. For example, a contractor could use this type of endorsement to add a subcontractor to their policy. 
  • Increased Limits– An increased limits endorsement is used to expand the purview of the coverage originally set by the general liability insurance policy. For example, an endorsement can increase the medical payments for bodily injury covered by the policy.
  • Adding or Changing a Location– This endorsement can add or change the address of a location covered under the original policy. For example, it can include a newly acquired office space not included in the original general liability policy. 

Endorsements Ensure Unhindered Growth

As your business grows, your original insurance coverage might often fall short. Endorsements or riders ensure that you can add or subtract from your policy to meet your current requirements. In short, general liability insurance will help you get started, but endorsements will ensure that your business thrives without the risk of claims resulting in severe financial losses.

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