An endorsement, also known as a rider, in the insurance world, is a document that amends an existing policy in some way. An endorsement typically adds, deletes, or alters coverages included on a policy, or amends information such as a name or an address.
An endorsement, once bound, becomes a part of your insurance policy. Most endorsements remain in effect for the policy period, however, some endorsements can apply to a limited timeframe, which would be specified in the document. An endorsement may also be renewed along with your policy to keep it in effect for multiple terms.
All endorsement requests must be received in writing, and include the change needed along with the effective date of said change.
There are two main types of endorsements, monetary and non-monetary.
- Monetary Endorsements are endorsements that affect the total premium of the policy. These may have an additional premium amount or a return premium amount.
- Non-Monetary Endorsements are endorsements that do not affect the premium amount.
Wholesalers and MGAs (managing general agents) receive an abundance of endorsement requests daily. Selectsys can handle endorsement processing services quickly and accurately for MGAs and wholesalers globally.