Endorsement

An endorsement is a written change to an existing insurance policy that adds, removes, or modifies the coverage, terms, or conditions. You might also hear it called a variation or amendment.

Think of it as an official edit to your policy. Instead of cancelling and starting again, your insurer issues an endorsement that updates the bits that need changing.

Why It Matters

• It lets you adjust your cover mid-term without having to take out a whole new policy.
• Endorsements are legally binding, so they become part of your policy wording.
• They can expand your cover (adding a new location) or restrict it (excluding a specific risk).
• If your business changes during the year, an endorsement keeps your cover up to date.

Common Reasons for an Endorsement

• Adding a new business premises or location to your property insurance.
• Increasing your sum insured after buying new equipment.
• Adding an extra named insured or interested party.
• Removing a vehicle from your fleet policy.
• Adding a waiver of subrogation clause required by a contract.
• Changing your business description or activities.

Simple Examples

• You open a second office and need your business insurance to cover the new address. Your insurer issues an endorsement adding the location.
• A head contractor’s agreement requires you to waive your insurer’s subrogation rights. Your broker arranges an endorsement to add the waiver.
• You sell one of your fleet vehicles. Your broker requests an endorsement to remove it and adjust your premium.

Common Mistakes or Misunderstandings

• Not reading the endorsement. It changes your cover, so always check what’s been added or removed.
• Assuming endorsements are automatic. You need to request changes and get written confirmation from your insurer.
• Forgetting endorsements can cost money. Adding cover usually means an additional premium. Removing cover might give you a refund.
• Thinking verbal agreements count. Until the endorsement is issued in writing, the change isn’t official.

When to Speak to a Broker

If your business has changed, you’ve signed a contract with specific insurance requirements, or you need to add or remove something from your policy, your broker can arrange the endorsement and make sure your cover stays right.

Need help?

If you need to update your policy or aren’t sure whether an endorsement is needed, reach out to Tank Insurance and we’ll sort it out.

Related Terms

• Policy Wording - The full document that sets out your cover. An endorsement changes parts of the policy wording.
• Subrogation - Waiver of subrogation is one of the most common endorsements requested in commercial contracts.