Manage Insurance Endorsements Ensure Contractual Alignment
Effectively managing insurance endorsements is critical for verifying that a vendor's policy actually extends the necessary protections required by your organization's contracts.
Why do endorsements matter for compliance?
A Certificate of Insurance (COI) alone does not prove the existence of specific endorsements like 'additional insured' or 'waiver of subrogation.' Organizations must request and review the actual endorsement forms to confirm the vendor's policy meets contractual requirements.
Management Workflow
Steps to Verify Endorsements
- 1
Define Requirements
Clearly outline in vendor contracts which endorsements (e.g., additional insured, primary and non-contributory) are mandatory.
- 2
Collect Documentation
Request the specific endorsement pages from the vendor's insurance carrier or broker.
- 3
Compare Against Requirements
Use internal review processes to confirm the forms match the contractual obligations.
COIs Are Not Policies
A Certificate of Insurance is provided for information only and confers no rights upon the certificate holder. The actual policy and its attached endorsements are what legally define the terms and scope of the insurance coverage. Always ensure that your review process includes requesting the necessary endorsement forms when required by your contract.
Key Terms
Common Insurance Endorsements
Additional Insured
An endorsement that extends insurance coverage to a party other than the named insured, such as a property owner.
Waiver of Subrogation
An agreement where the insurer gives up the right to recover damages from a third party after paying a claim.
Primary and Non-Contributory
A requirement that the vendor's insurance pays first before any other insurance policy and without seeking contribution from other policies.