Which endorsement is appropriate to extend coverage to a newly acquired organization during a transition?

• A. Additional Insured
• B. Primary & Noncontributory
• C. Waiver of Subrogation
• D. Newly Acquired Organizations

Answer: (D)

When a business is in transition after acquiring another organization, you want protection in place for the new entity without gaps in coverage. The Newly Acquired Organizations endorsement is built for this exact situation. It automatically extends the insured’s liability coverage to include newly acquired or formed organizations for a limited period, typically 30 to 90 days, depending on the policy. This gives you breathing room to finalize a longer-term arrangement while the transition proceeds, helping prevent coverage lapses during the integration. The other endorsements don’t serve this purpose: Additional Insured expands protection for other parties related to the insured, not the newly acquired organization itself; Primary & Noncontributory affects how multiple policies contribute but doesn’t extend coverage to a newly acquired entity; Waiver of Subrogation waives the insurer’s right to seek recovery from another party. So, for extending coverage to a newly acquired organization during a transition, the New Acquired Organizations endorsement is the appropriate choice.