Demystifying Endorsements & Subjectivities
What they mean, why they matter, and how to stay compliant.
At Qudos Insurance we believe that a good insurance policy is not just about having a certificate — it’s about understanding what’s actually covered and what conditions apply.
Two of the most important parts of your policy are:
- Endorsements
- Subjectivities
Knowing what these mean helps ensure you stay protected when you need it most.
What is an Endorsement?
An endorsement is a change, addition, or limitation to your insurance policy.
It can:
- Add extra cover
- Remove or restrict some cover
- Set out specific conditions you must meet
Endorsements legally change your policy.
Not following them could affect your ability to claim.
What is a Subjectivity?
A subjectivity is a requirement you must fulfil — either before your policy starts, or within a certain timeframe.
These are usually about:
- Providing documents
- Completing inspections
- Making risk improvements
Until you meet the subjectivity, full cover may not apply.
If you don’t meet a subjectivity, insurers can:
- Withdraw cover
- Decline a claim
- Cancel your policy
Common Endorsements and Subjectivities
| Type | What It Means | Why It Matters to You |
| Height Work Limitation | Cover only applies to work below a specified height (e.g., 10m). | Work done above that height could be uninsured. |
| Hot Works Warranty | Special fire safety steps must be taken when using welding or blowtorches. | Fires caused without following procedures may not be covered. |
| Use of Bona Fide Subcontractors | Subcontractors must have their own insurance. | Claims could be rejected if your subcontractors aren’t insured. |
| Minimum Security Requirements | Must have approved locks, shutters, alarms or CCTV at your premises. | Theft or break-in claims could be refused if security isn’t compliant. |
| Subject to Satisfactory Survey | A survey of your premises must be completed and passed. | Cover could be withdrawn if issues are found and not fixed. |
| Health and Safety Compliance | You must have a formal Health & Safety policy and follow it. | Injury claims could be reduced or rejected if H&S standards aren’t followed. |
| Product Recall Exclusion | Cover excludes any costs relating to recalling faulty products. | You may need separate recall insurance if this is important. |
| Retroactive Date for Professional Indemnity | Only work done after a set date is covered. | Claims from work done before the date won’t be insured. |
| Subject to Provision of RAMS | Must provide Risk Assessments and Method Statements for high-risk activities. | Claims related to activities without RAMS could be refused. |
| Materials Exclusion | Certain materials (e.g., combustible cladding, EPS insulation) are excluded. | Damage caused by excluded materials is not insured. |
| Fire Safety Compliance | Specific obligations around fire alarms, extinguishers, and fire risk assessments. | Fire damage claims could be invalidated if not complied with. |
| Electrical Inspection Condition | Regular fixed wiring tests must be done (e.g., every 5 years). | Fire claims caused by faulty wiring may not be paid if inspections are missing. |
| Contractual Liability Limitation | Cover excludes liabilities you accept under contracts unless you’d be liable at common law. | Contracts with harsh clauses could leave you uninsured. |
| Subject to No Material Change | You must tell insurers about any major business changes (e.g., expansion, new services). | If you don’t disclose changes, cover could become invalid. |
| Environmental Condition Warranty | Must comply with environmental laws and regulations. | Pollution claims could be denied if you breach regulations. |
Important: Some Endorsements Are "Claims Conditions"
Some endorsements create extra obligations at claim time — for example:
- Notify claims promptly (e.g., within 7 days of discovery)
- Retain damaged goods for inspection
- Assist with investigations
Failure to meet claims conditions could invalidate a claim even if you were insured.
How We Help You
- We review and explain every endorsement and subjectivity before you bind cover.
- We highlight any urgent actions you need to take.
- We check that your business activities match the cover correctly.
- We support you with updates if anything changes during the policy year.
Top Client Tips
- Always read your endorsements and subjectivities carefully.
- Ask us if you’re unsure — no question is too small.
- Keep good records — surveys, maintenance checks, security upgrades, etc.
- Tell us about changes — growth, new services, relocations, etc.
Need Advice? We're Here to Help.
If you have any questions about your endorsements, subjectivities, or your insurance generally, please get in touch with us.
Insurance made clear. Protection made simple.