Which endorsement would typically be used to automatically extend coverage to a newly acquired organization for a defined period?

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

Answer: (D)

The idea being tested is how coverage can be automatically extended when you acquire a new organization. The Newly Acquired Organizations endorsement is specifically designed for this situation. It provides automatic liability (and sometimes other coverages) to a newly acquired entity for a defined period—often 30 to 90 days—so there’s no gap while you decide whether to add the acquired organization to the policy or adjust terms. This gives you breathing room to complete the ownership change, run the entity under the existing policy framework, and then formalize long-term coverage.

Other endorsements serve different purposes. An Additional Insured endorsement adds coverage for another party under your policy, not for extending your coverage to an acquired entity. A Primary & Noncontributory clause ensures your policy remains primary and does not share the burden with other insurers on a given project, which isn’t the automatic extension of coverage for a new acquisition. A Waiver of Subrogation prevents your insurer from pursuing recovery from a third party after a loss, which again is a separate contract term and not about extending coverage to a newly acquired organization.