Rider

What is a rider?

In insurance terms, a rider (aka an insurance endorsement) is defined as an addition you make to the policy you already have.

Is it like a band’s touring rider?

Yes, that’s probably where you first heard the term “rider.” You’ve likely heard it in the context of a touring band’s requirements, like Van Halen’s legendary request for a very particular bowl of M&Ms¹ or Rihanna’s non-negotiable animal print rugs².

Like those additional band requests, a rider on an insurance policy is a kind of optional extra — a way of having additional coverage without purchasing an entirely separate policy.

Why would someone want to purchase a business insurance rider?

Riders are sometimes necessary because general liability, commercial property, commercial auto, and other forms of insurance don’t allow for much customization beyond the basic policy other than increasing or decreasing coverage limits or deductibles. By adding a rider to your policy, you can customize these broad coverages to your precise needs and gain additional benefits.

Since riders are much more narrow in scope than full insurance policies, they are generally affordable and have low or no deductible.

For example, if you’ve purchased auto insurance recently, you’ve most likely been given the option to add roadside assistance. Should your car break down, help is only a phone call away, generally with no fee if you have this rider. If not, you’ll be stuck paying for help out-of-pocket.

Adding riders to your insurance policy gives you more flexibility in changing your coverage to meet your evolving needs. You can add or take off elements of coverage as you need them without changing your entire policy.

With a rider, you can easily add coverage or increase your coverage limit — dropping it when you no longer need it. That means you can get better coverage when you need it while saving money by not having to purchase a separate policy.

What are different types of riders

You can add-on many types of riders to nearly every type of insurance. You can add riders to homeowners, auto, and even life insurance for extra coverage, extended coverage, or even eliminating certain claims the policy will cover.

As a small business owner, some of the most common riders you might consider are:

• Adding coverage for specific property aspects that commercial property insurance policies normally exclude, like building foundations, underground pipes, drains, and fencing.
• A commercial property floater that protects property your company doesn’t store at a fixed location like construction equipment used at various sites.
• A personal property rider. For example, if your property policy only covers jewelry up to $2,000 in value, and you want to insure your spouse’s $5,000 wedding ring. A personal property rider can cover this. The same goes for other valuable possessions like a high-cost painting or collector-grade guitar.
• Adding a rider to workers’ compensation insurance so you can extend benefits to casual employees if your state’s laws don’t mandate their coverage.

These are just a few examples. In fact, we’ve barely scratched the surface of possibilities.

What riders should you consider?

As a small business owner, while you almost certainly need general liability insurance, the need for riders is more flexible.

Before you add a rider, you need to consider a few things. First, you want to make sure the rider you’re adding isn’t accidentally duplicating coverage you already have.

Second, you need to evaluate how well your insurance covers you, your team your property, and specific needs. If you have solid small business insurance in place, you might be comfortable without riders. However, if you feel exposed in some areas, it might be a good idea to talk to your insurance agent about adding a rider.

Ultimately, it’s up to you to decide if a rider is worthwhile for your own peace of mind. The important thing to remember is when you purchase your base policy, you can always add a rider later.

Get ready to ride with NEXT

Small business owners know that running their business can be a 24/7 job. That’s why NEXT makes it easy to manage your policy 24/7 with our simple-to-use online portal.

You can start a quote, add riders and access your certificate of insurance online immediately — in about 10 minutes.

Start your instant quote today.

¹ Yes, Van Halen Really Did Require Concert Venues to Remove the Brown M&Ms

² The 20 most ridiculous things superstar musicians have demanded at their concerts