Endorsements Can Change Policy Many Times
Policy endorsements change the policy as many times as the carrier wishes. Workers compensation policies may need some type of change or addition during the course of the policy year. These endorsed changes for Workers Comp policies may possibly occur due to changes in state laws, change in ownership, or business operations.
They are additive meaning they add or change a policy. An endorsement rarely takes away from the original policy. There are many Workers Comp laws that limit when a change can be made to a policy. For example, CA has very specific rules on when a classification code may be changed.
These policy changes are one of the red flags on possible premium overcharges. Some of our clients have experienced over 100 changes during a policy period.
You should always read any endorsements and the part of the policy that was changed by the endorsement. Multiple amendments during a policy year should also be considered a premium overcharge red flag.
Make sure that someone in your company reads every endorsement on every policy, not just workers comp.
A review of the original policy is always recommended to see exactly what the facets of the original policy.
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