What are endorsements in insurance?

Endorsements in insurance are modifications to an insurance policy that change coverage. These changes can enhance, limit, or clarify the terms of the original policy. For instance, an endorsement might add coverage for specific events that were not included in the base policy or alter the coverage limits for certain types of risks. This flexibility allows policyholders to tailor their insurance coverage to better meet their individual needs or changing circumstances.

The ability to use endorsements is essential for both insurers and policyholders as it provides a straightforward way to adjust a policy without the need for creating an entirely new policy. This makes endorsements a practical tool in the management of insurance contracts and helps ensure that policyholders have the necessary coverage in light of their unique situations.