What is an "insurance policy endorsement"?

An insurance policy endorsement is a document that modifies the terms of an existing insurance policy. It serves as an official amendment to the policy, allowing for changes that can enhance, restrict, or clarify coverage without the need to rewrite the entire contract. Endorsements are commonly used to add new coverage, modify limits or deductible amounts, or exclude specific risks, thus tailoring the insurance policy to better meet the unique needs of the policyholder.

This ability to amend an existing policy rather than starting anew simplifies the process for both the insurer and the insured, making endorsements a critical tool in the management of insurance coverage. They ensure that as circumstances change, the policy can be adjusted to continue providing adequate protection.