What is the purpose of endorsements in a CGL policy?

• A. They are primarily used to adjust the base premium only.
• B. They replace the declarations page.
• C. Endorsements tailor coverage by adding insureds, altering limits, or adding options like Completed Operations, Additional Insureds, and hired/non-owned autos.
• D. They are only used for personal auto policies.

Answer: (C)

Endorsements tailor a CGL policy by adding insureds, altering limits, or adding options like Completed Operations, Additional Insureds, and hired/non-owned autos. They attach to the policy to modify its terms beyond the base form, matching the coverage to the specific risks of a project or business needs. For example, an Additional Insured endorsement extends protection to another party involved in a contract; a Completed Operations endorsement covers liability for work that's been finished; hired/non-owned autos coverage protects the business when it uses vehicles it doesn’t own. Endorsements can expand coverage, fill gaps, or set conditions, rather than just adjusting the price. They don’t replace the declarations page and aren’t limited to personal auto policies, but are a common way to customize commercial liability protection.