Glossary / Policy structure / Endorsement

Endorsement

Policy structure DICEE: Endorsements

An amendment that modifies your policy's terms, coverage, or exclusions—and controls how vendor requirements are fulfilled.

An endorsement (or rider) is a document attached to your policy that changes it—adding coverage, removing exclusions, or adding additional insureds. Endorsements are how vendors' specific requirements get added to your policy. Without the right endorsements, your COI alone won't satisfy vendor contracts.

Where you'll see it

PolicyCOIVendor contract

Why it matters for your business

  • Vendor contracts often require specific endorsements (additional insured, waiver of subrogation).
  • Endorsements can expand or restrict your coverage.
  • A COI alone doesn't change your policy—endorsements do.
  • Endorsements are the mechanism that controls vendor insurance requirements.

People also ask

What is a policy endorsement?

A policy endorsement (also called a rider) is a formal document attached to your insurance policy that modifies its terms, coverage, or exclusions. Endorsements can add new coverage, remove standard exclusions, add additional insureds (such as landlords or clients), or change policy limits or deductibles. They become part of your policy and are legally binding once attached.

When do I need an endorsement?

You typically need an endorsement when a vendor, landlord, or client requires specific insurance provisions that aren't in your standard policy. Common examples include adding them as an additional insured, waiving subrogation rights, or increasing limits for a specific contract. You may also need endorsements to add specialized coverage your business requires, such as hired auto coverage or cyber breach response services.

What is the difference between an endorsement and the base policy?

The base policy is the standard insurance contract with your insurer, while an endorsement is an amendment that customizes that contract. Your base policy provides general coverage for typical risks; endorsements modify it to fit your specific needs or meet vendor requirements. Endorsements can expand coverage, restrict it, or change terms. They supersede conflicting language in the base policy wherever applicable.

Ready to take the next step?

Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994

Last updated: July 2026.