Model Policy Language & Sample Endorsements from Reputable Sources for Business Insurance Essentials

A practical, legally-conscious guide to creating clear, enforceable model policy language and sample endorsements U.S. commercial buyers, brokers, and risk managers can use when negotiating coverage. This guide focuses on commonly requested endorsements (CGL, Commercial Auto, Workers’ Compensation, Property, Cyber, Professional) and shows sample language, negotiation strategies, red flags, and compliance touchpoints with authoritative U.S. references.

Note: this material is educational and not legal advice. Always have policy language and endorsements reviewed by coverage counsel or your broker before relying on them in contracts.

Table of Contents

Why use model policy language and endorsements
Key principles for drafting endorsement language
Core endorsements explained (what they do, when to use them)
Model/sample endorsement clauses (by line)
A negotiation checklist & red flags
How to map endorsements to regulatory and vendor resources
Comparison table: common endorsements at a glance
Appendix: sample endorsement templates (copy-ready)
References & further reading (U.S.-focused)

Why use model policy language and endorsements

Clarity eliminates disputes — precise endorsement wording reduces ambiguity about who’s covered, when, and how sublimits/conditions apply.
Contractual risk transfer depends on workable endorsements — many contracts require Additional Insured (AI), Primary & Non-Contributory, and Waiver of Subrogation language; poorly drafted endorsements create coverage gaps.
Underwriting consistency — model language speeds binder and certificate issuance and helps underwriters price and accept risk correctly.
Regulatory alignment — U.S. state insurance departments and federal agencies (OSHA, DOL) influence what insurers will endorse or exclude; know the limits. For employer obligations and interaction with workers’ comp and OSHA, see federal employer guidance. (osha.gov)

Key principles for drafting endorsement language

Use plain, precise language:
- Named parties, exact contract references, and clear effective dates.
Avoid hidden preconditions:
- For example, “Additional Insured — but only for litigation defense costs” invites disputes.
Limit reliance on certificates:
- Certificates of insurance are evidence but do not modify coverage—endorsements do.
Match policy triggers to contractual risk:
- Completed operations vs. operations-in-progress; named-project vs. blanket coverage.
Address limits, aggregates, and sublimits explicitly:
- Is the General Aggregate shared or project-specific?
Use ISO/standard forms when appropriate, but confirm edition dates and insurer modifications:
- ISO forms (e.g., CG 20 10, CG 20 37 family) are widely recognized, but carriers sometimes issue proprietary language—verify the exact form wording. (contractriskacademy.com)

Core endorsements — what they are and when you need them

Additional Insured (AI): Extends CGL protections to another party (owner, GC, vendor). Critical in construction, leases, and many service contracts.
Primary & Non-Contributory (P&NC): Requires the insured’s policy to pay first and prevents other policies (e.g., the AI’s own) from contributing.
Waiver of Subrogation (WOS): Prevents the insurer from pursuing the additional insured/contractor after settling a loss.
Blanket Additional Insured: Automatically adds parties where a written contract requires AI status—handy for vendors but often restricted by carriers.
Completed Operations: Extends coverage after work is finished—important for injury/damage that appears later.
Business Income (Time Element) — Extra Expense: Critical for continuity planning; specify waiting period, coinsurance, and agreed value where appropriate.
Ordinance or Law (Building Code/Enforcement): Covers costs to repair to current code after a covered loss.
Hired & Non-Owned Auto (HNOA): For liability exposures when employees use hired or personal vehicles for business.
Garagekeepers / Garage Liability: For auto dealers, repair shops — distinct physical damage and liability triggers.
Cyber/Privacy Endorsements: Data breach notification costs, business interruption from cyber events, ransomware response coverage.
Workers’ Compensation Endorsements: Alternate employer endorsements, voluntary compensation, and stop-gap coverage (where federal or state stop-gap rules apply).

Five load-bearing facts and why they matter (with authoritative references)

Federal guidance and employer responsibilities inform insurance needs and workplace safety programs that reduce claims and premium exposure. See OSHA employer responsibilities. (osha.gov)
Small businesses should follow a structured process to buy business insurance (assess risks, find licensed agent, shop around, reassess annually); the SBA provides a practical checklist and overview. (sba.gov)
State regulators and NAIC consumer tools are primary sources to research insurer complaint histories, company profiles, and to file complaints; NAIC consolidates state consumer resources and a company search tool. (content.naic.org)
ISO-standard forms (CG series) are the industry baseline for many CGL endorsements; verifying ISO form numbers and edition dates ensures you know exactly which endorsement language applies. Industry commentary explains how to check for true-ISO forms versus carrier-modified forms. (contractriskacademy.com)
Financial strength matters: third-party ratings (e.g., AM Best) are commonly used to evaluate insurer ability to pay claims; always check the insurer’s current Best’s Credit Rating as part of carrier due diligence. (web.ambest.com)

Model / Sample endorsement clauses (practical, negotiable text)

Below are concise, commonly requested endorsement templates. Use them as drafting starting points. Replace bracketed fields with specific names, dates, limits, and contract references. Always confirm wording with coverage counsel.

1) Additional Insured — Owners, Lessees or Contractors (Scheduled)

Purpose: Add a specific party as an insured for liability arising out of the named insured’s operations.
Sample:

ADDITIONAL INSURED — OWNERS, LESSEES OR CONTRACTORS (SCHEDULED)

Named Insured: [Named Insured]
Policy No.: [Policy Number]
Effective Date: [Effective Date]

The policy is amended to add as an Additional Insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage", or "personal and advertising injury" caused, in whole or in part, by:
(a) The acts or omissions of the Named Insured; or
(b) The acts or omissions of those acting on behalf of the Named Insured,
in the performance of the Named Insured's ongoing operations for the Additional Insured described in the written contract [Contract Name/Date] between the Named Insured and the Additional Insured.

Negotiation tip: Add “only where required by written contract” if the client wants AI only where contractually required. For completed operations exposure, ensure the endorsement specifically includes completed operations (or use a CG 20 37-style completed operations variant).

2) Primary & Non-Contributory (P&NC)

Purpose: Ensure the insured’s policy pays first and the additional insured’s coverage does not contribute.
Sample:

PRIMARY AND NON-CONTRIBUTORY

With respect to liability for which the Additional Insured is added by endorsement, this insurance shall be primary and any other insurance available to the Additional Insured shall be excess and non-contributory to this insurance. No contribution shall be sought from the Additional Insured's insurance, unless and until the limits of this policy are exhausted.

Red flag: Many carriers accept P&NC only when the contract obligates it and where the insured has appropriate control of the risk; avoid blanket P&NC with no contractual tie.

3) Waiver of Subrogation (WOS)

Purpose: Prevent insurer from pursuing an insured’s contractual counterpart after settlement.
Sample:

WAIVER OF SUBROGATION

To the extent permitted by law, the insurer waives any right of recovery against [Name of Contract Party] arising from any payment under this policy, if such waiver is required by a written contract or agreement executed prior to the loss and involving the Named Insured.

Compliance note: Some states have statutory limits on enforceability; verify local law before applying WOS broadly.

4) Blanket Additional Insured (Automatic)

Purpose: Automatically extends AI status when a contract requires it.
Sample:

BLANKET ADDITIONAL INSURED (AUTOMATIC)

Where a written contract executed prior to loss requires the Named Insured to provide Additional Insured status to another party, such party shall be deemed an Additional Insured under this policy with respect to liability arising out of the Named Insured's operations performed under such contract, provided that:
(a) The written contract is in effect on the date of loss; and
(b) The contract was executed prior to the loss.

Negotiation caveat: Carriers often restrict blanket AI for certain high-risk operations—expect negotiations on scope and aggregate handling.

5) Completed Operations — Products-Completed Operations

Purpose: Cover claims that arise after work is completed.
Sample:

COMPLETED OPERATIONS COVERAGE — EXTENSION

This policy is extended to cover liability for "bodily injury" or "property damage" arising out of the Named Insured's products or completed operations, subject to the terms, conditions, and limits of this policy, including any general aggregate that may apply.

Best practice: For construction contracts, insist on completed operations AI for the project duration plus an extended reporting period (e.g., 2–5 years) for latent defects.

6) Business Income (Time Element) — Agreed Value Option

Purpose: Replace lost income after a covered property loss.
Sample:

BUSINESS INCOME — AGREED VALUE

In the event of a covered physical loss causing suspension of operations, the insurer will pay for loss of "business income" and "extra expense" up to the Agreed Value of $[Agreed Value] for the period of restoration, subject to the terms, deductible, and waiting period of the policy.

Negotiation tip: For critical operations, shorten waiting periods (e.g., 24–48 hours) and consider extended period of indemnity or contingent business interruption coverage.

7) Cyber — Privacy Breach & Ransom Response (First-Party Notice)

Purpose: Define immediate insurer response obligations and third-party notification costs.
Sample:

CYBER PRIVACY RESPONSE — FIRST NOTICE

The insurer shall provide immediate incident-response services and fund reasonable costs of: forensic investigation, legal counsel, regulatory notification, credit monitoring, ransom negotiation and payment (where covered), and business-interruption losses resulting solely from a covered cyber-event, subject to the policy limits and retention.

Caveat: Cyber coverages are highly negotiated; specify whether ransom payments are allowed and whether payments require prior insurer approval.

8) Hired & Non-Owned Auto Liability (HNOA) — Named Insured Employee Use

Purpose: Cover liability for business use of hired or employee-owned vehicles.
Sample:

HIRED & NON-OWNED AUTO LIABILITY

This policy will pay those sums that the insured becomes legally obligated to pay because of "bodily injury" or "property damage" arising out of the use of a hired automobile or a non-owned automobile in the insured's business operations, subject to the policy's limits, conditions and exclusion for vehicles owned by insureds.

Tip: Add restrictions for employees with poor driving records and require motor vehicle record checks.

9) Workers’ Compensation — Alternate Employer Endorsement

Purpose: Provide WC coverage where another entity is treated as the statutory employer.
Sample:

ALTERNATE EMPLOYER ENDORSEMENT

The insurer agrees to extend Workers' Compensation coverage to [Alternate Employer Name] as an Alternate Employer to the extent required by the written contract dated [Date], covering employees of the Named Insured performing services for the Alternate Employer. This extension applies only to statutory liabilities and does not alter premium allocation provisions unless otherwise stated.

Regulatory note: Workers’ comp is state-regulated; alternate employer and stop-gap rules vary—coordinate with state WC board and consult the state's compliance guidance.

Negotiation checklist — practical steps before signing a contract that requires endorsements

Confirm exact party names and EINs to be added as Additional Insureds; avoid vague labels like "owner" without identification.
Require the contract to be attached or cited in the endorsement text (e.g., “as required by contract dated [mm/dd/yyyy]”).
Verify edition dates on ISO forms (e.g., CG 20 10 12 19) to ensure you’re getting the intended wording. (contractriskacademy.com)
Insist on P&NC only where a clear contractual indemnity shifts primary responsibility and where the insured controls the operations that generate loss.
For WOS, confirm state law and whether the insurer will accept it when the contract imposes WOS on the insured (some carriers require additional premium).
For blanket endorsements, confirm scope (vendors? subcontractors?) and any dollar caps or sublimits.
For Cyber endorsements, verify retroactive date, first-party sublimits, and whether ransom payments are covered.
Ask for carrier confirmation of capacity and ratings; check AM Best or other rating services as part of due diligence. (web.ambest.com)
Confirm whether AI coverage includes defense costs inside or outside the limit (duty to defend inside limits can quickly erode limits).
Preserve the right to audit the policy wording and have coverage counsel review final forms.

Red flags to watch for in endorsement language

Vague triggers such as “arising out of” without contract tie where a party could be pulled in for unrelated acts.
Insurer-added preconditions like “provided that the Additional Insured timely notifies the carrier” — creates friction.
Exclusions added to an otherwise standard ISO form that materially reduce coverage (e.g., removing completed operations).
AI limited “to vicarious liability only” or limited to “your work”—these narrow what most owners expect.
Endorsements that refer to a certificate of insurance as the operative document—certificate = evidence, endorsements = coverage modifier.

Comparison table: common endorsements at a glance

Endorsement	Purpose	Typical Trigger	Recommended Limits / Notes
Additional Insured (Scheduled)	Extend CGL to contract party	Named in endorsement or contract	Match underlying policy limits; confirm completed operations inclusion
Primary & Non-Contributory	Make insured’s policy primary	Contractual obligation	Applies only when contract ties risk; verify carrier acceptance
Waiver of Subrogation	Prevent insurer recovery	Required by contract	Confirm state law; may increase premium
Blanket AI (Automatic)	Auto-AI when contract requires	Written contract prior to loss	Convenient but often more restrictive from carrier
Completed Operations	Post-completion exposure	After job completion	Consider extended reporting period
Business Income (Agreed Value)	Replace lost income	Property loss causing suspension	Specify waiting period and agreed value
Cyber Response	Incident response & breach costs	Cyber event	Retro date, sublimits, ransomware conditions vary widely
Hired & Non-Owned Auto	Liability for non-owned autos	Hire/use of autos in business	Consider MVR controls and employee exclusion clauses
Alternate Employer (WC)	Statutory WC extension	Contractual employment relationships	Varies by state; confirm with state WC authority

How to map endorsements to regulatory & authoritative resources

Use NAIC consumer and company search tools to confirm insurer licensing, complaint history and company filings—especially if the contract requires a specific carrier or rating. (content.naic.org)
Review state insurance department guidance for filing requirements and permitted endorsement language (some states publish model endorsement approvals or consumer alerts).
For employer exposures and intersection with workers’ compensation, consult OSHA guidance and state WC offices to ensure contractual obligations don’t conflict with statutory WC coverage. (osha.gov)
For carrier financial strength and capacity, consult AM Best and similar rating agencies when selecting carriers for large-limit or long-tail risks. (web.ambest.com)
For buying and structuring small-business coverages (BOP, CGL, Property), follow the SBA’s buying steps to ensure you assess exposures and shop appropriately. (sba.gov)

Appendix A — Practical templates (copy-ready, fill in fields)

(These are expanded templates you can paste into a draft endorsement packet—edit bracketed fields to match the transaction.)

Additional Insured (Owners, Lessees or Contractors — Completed Operations Included)

ADDITIONAL INSURED — OWNERS, LESSEES OR CONTRACTORS — COMPLETED OPERATIONS

This policy is amended to add the following as Additional Insured(s): [Insert Party Name(s) and Address(es)].

Coverage: Only with respect to liability arising out of the Named Insured’s operations performed for the Additional Insured under the written contract dated [mm/dd/yyyy], this policy shall provide the Additional Insured with coverage for "bodily injury", "property damage", and "personal and advertising injury" arising out of the Named Insured’s operations, including Completed Operations, subject to the terms, conditions, exclusions and limits of the policy.

Primary and Non-Contributory (narrow to contract)

PRIMARY & NON-CONTRIBUTORY (CONTRACTUAL REQUIREMENT)

Where a written contract dated [mm/dd/yyyy] between the Named Insured and [Additional Insured] requires the Named Insured's insurance to be primary and non-contributory, this policy will be primary and non-contributory for claims covered by this policy arising from the Named Insured's operations performed under the said contract.

Waiver of Subrogation (limited to contract)

WAIVER OF SUBROGATION (CONTRACT-BASED)

If required by written contract dated [mm/dd/yyyy] and executed prior to a loss, the insurer waives all rights of recovery against [Name(s)] for losses paid under this policy arising out of the performance of the Named Insured’s obligations under that contract, to the extent permitted by law.

Practical examples & negotiation scenarios

Construction: Owner requires AI, P&NC, and WOS. Seek AI for completed operations, insist WOS only for liability that arises from insured’s negligence, and confirm whether P&NC applies to subcontractor vicarious exposures.
Vendor supplying services in multiple states: Use a blanket AI limited to contracts executed prior to loss, and ensure endorsements include automatic status for scheduled contracts—expect carrier to require annual list of covered contracts.
Lease of premises: Lessor often requires AI and WOS. Lessor should be named exactly (legal entity) and AI must include premises operations and, if desired, products/completed operations if the tenant performs construction.

How to vet endorsement language — authority and accuracy checklist

Confirm form numbers and edition dates for ISO forms (CG series) or state-filed proprietary forms. (contractriskacademy.com)
Cross-check endorsement wording against the insurer’s filed policy forms (available from state DOI or carrier filings).
Run company checks on NAIC and state DOI for complaint trends and licensing status. (content.naic.org)
Review insurer financial strength via AM Best or similar agencies. (web.ambest.com)
If cyber or privacy coverage is involved, verify the insurer’s cyber claims handling experience and sublimits—cyber markets vary quickly.

Frequently asked questions (short answers)

Q: Are certificates of insurance sufficient to create Additional Insured status?
- A: No—certificates are proof of insurance, not endorsements. The Additional Insured status must be created by an endorsement in the underlying policy.
Q: Will a carrier accept Blanket AI for all contracts?
- A: Sometimes, but carriers commonly restrict blanket AI for high-risk operations or require specific underwriting terms.
Q: Do state laws affect Waiver of Subrogation enforceability?
- A: Yes—state statutes and court decisions can limit or allow enforceability; check state WC and contract law.

References & further reading (U.S.-focused — curated internal resource links)

(Use these to build your document library and to navigate related guidance across the insurance buyer cluster.)

External authoritative sources cited (for core claims)

U.S. Small Business Administration — Get business insurance: stepwise guidance and types of policies small businesses should consider. (sba.gov)
Occupational Safety and Health Administration (OSHA) — employer responsibilities that affect insurance needs, safety programs, and reporting obligations. (osha.gov)
National Association of Insurance Commissioners (NAIC) — consumer pages, company search and complaint index resources for insurer research. (content.naic.org)
Insurance Services Office (ISO) / industry commentary — how to verify ISO form numbers and edition dates; common CG forms (Additional Insured series). (contractriskacademy.com)
AM Best — ratings and credit assessment guidance for insurer financial-strength due diligence. (web.ambest.com)

Final checklist before signature

All Additional Insured names are exact legal entities and match contract references.
Endorsements explicitly cite the contract(s) that trigger AI, P&NC, or WOS.
Carrier confirms acceptance of AI/P&NC/WOS and any applicable premium adjustments.
Completed operations and products exposure is addressed (duration and limits).
Business Income and Cyber language aligned to business continuity plans and incident response resources.
Coverage counsel has reviewed the endorsement packet.
Carrier financials and complaint history checked (AM Best/NAIC/state DOI).

If you want, I can:

Draft customized endorsement language tailored to a specific contract or industry (construction, manufacturing, professional services, retail).
Create a one-page endorsement packet checklist you can present to brokers and underwriting teams.
Review a redline of insurer-provided endorsements and flag problematic language (paste the wording here).