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Rider: Definition, Example and Related Terms

What is a Rider ?

A rider is a supplementary document or provision that amends, modifies, or adds to the terms of an existing contract or agreement. It's like adding an extra chapter to a book that changes or clarifies some of the original content. Riders are commonly used in insurance policies, entertainment contracts, and other legal agreements to address specific situations or needs that weren't covered in the original document.

When a rider is added to a contract, it becomes part of the legal agreement and carries the same weight as the original terms. Think of it as a legal 'post-script' that can either expand or limit the coverage or obligations outlined in the main contract.

For example, in insurance contracts, a rider might add coverage for specific items or risks that weren't included in the standard policy. In entertainment contracts, riders often specify particular requirements or conditions that must be met for a performance to take place.

It's important to note that riders must be properly executed (signed and dated) by all parties involved in the original agreement to be legally binding. They should clearly reference the original contract and specify which terms they're modifying or adding.

Example(s)

  • Scenario Description
    Insurance Policy Rider A homeowner's insurance policy includes a rider that specifically covers expensive jewelry items above the standard policy limits. This rider adds extra coverage for specific items that wouldn't normally be fully covered under the main policy.
    Performance Contract Rider A musician's contract includes a rider that specifies certain requirements for their performance, such as specific sound equipment, lighting arrangements, and backstage amenities. These requirements are additional to the main performance agreement but are essential for the show's success.
    Lease Agreement Rider A commercial lease agreement includes a rider that allows the tenant to sublease the space under specific conditions, something not permitted in the original lease terms. This rider modifies the original agreement while maintaining its other terms.

Related terms