Policy Endorsements vs. Dec Page
Repetitive Workers Comp policy Endorsements are one of the 10 Red Flags To Possible Overcharges.
The Policy Dec Page (also called the Declarations Page) is an important part of any policy. Workers Comp policies are no exception. However, some policies may have a more important – section- The Endorsements. Why?
The answer is simple. A Workers Comp policy can be altered hundreds of times in a policy period. Actually, the most I have seen is just over 100 times in a policy period.
Endorsements are usually emailed or mailed to an employer from the insurance carrier or through their agent. Any endorsement should be read in full upon receipt.
Many times, the information enclosed may be a minor change. The policies can be changed dramatically in certain cases.
As discussed in an earlier post, the major parts of a policy are Declarations, Insuring Agreements, Conditions, Exclusions, and Endorsements.
One can think of the Endorsement pages as Appendices where each additional Appendix modifies the policies and even earlier Appendices/Endorsements.
Other types of policies are no different. I have just received an auto and home combined policy endorsement. I read both of them very closely as should you with your Workers Compensation policies.
There are very strict rules on when a Work Comp policy can be endorsed by the carrier. Each state has its own set of Endorsement rules.
In the age of scans and emails, the Endorsement documents may be emailed to your company lumped in with all of your business emails. Make sure that you have your spam whacker let the emails in from your agent and carrier at all times.
Someone in your office should be responsible for receiving; reading; and bringing the emailed Endorsements to the attention of management.
Endorsements do have a function of simplification. This keeps a policy owner from having multiple changes that are internal to a policy. In other words, without Policy Endorsements, the complete policy would have to be read and re-read every time there was a modification.
Also Read: What Is A Guaranteed Cost Program In Workers Compensation?
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