Which endorsement provides automatic coverage for a newly acquired organization for a defined period?

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

Answer: (A)

Automatic coverage for a newly acquired organization under a commercial liability policy is provided by the Newly Acquired Organizations endorsement. This endorsement automatically extends liability coverage to a newly acquired or formed entity for a defined period, typically up to several months (often 90 days to 12 months, depending on the policy). It helps prevent gaps in protection while you finalize the acquisition and integrate the new organization. After the endorsement period, you generally need to report the acquisition to the insurer and either extend coverage or add the entity via a formal endorsement, with any premium adjustments as required. Other endorsements like Additional Insured, Primary & Noncontributory, or Waiver of Subrogation serve different purposes and do not automatically cover a newly acquired organization for a defined period.