What is an endorsement in the context of insurance?

An endorsement in insurance refers to a document that modifies, adds to, or elaborates on the original terms of an insurance policy. This can include changes such as adding coverage for specific events, altering the coverage limits, or excluding certain risks. Endorsements are essential for tailoring an insurance policy to meet the unique needs of the insured, ensuring that the coverage accurately reflects potential risks and desired protection.

Endorsements can also serve as a way to provide additional context or specific conditions that were not included in the initial policy. They are officially recognized parts of the policy and legally bind both the insurer and the insured, making them crucial in the effective management and adaptation of an insurance contract over time. This understanding helps policyholders ensure that their coverage aligns with their current circumstances and requirements.