What is an "endorsement" in an insurance policy?

An endorsement in an insurance policy is a modification or addition that changes the coverage provided by the policy. It can serve various purposes, such as adding coverage for specific types of risks, changing the terms and conditions of an existing policy, or removing certain coverage. This flexibility allows policyholders to tailor their insurance to better meet their needs or address changes in their circumstances.

In many cases, endorsements are utilized to clarify the scope of coverage or to include additional insured parties, ensuring that the policyholder maintains adequate protection as their situation evolves. By using endorsements, insurers and policyholders can easily adjust the policy without needing to issue an entirely new contract, which streamlines the process of updating coverage.