What are endorsements in an insurance policy?

Endorsements in an insurance policy refer to additions or amendments that alter coverage within the existing policy. They are used to customize the policy to meet the specific needs of the insured, allowing for enhancements or changes to the coverage provided. This can include adding coverage for specific items, modifying existing coverage limits, or excluding certain types of loss that might not apply to the individual’s situation.

Understanding endorsements is critical because they play a vital role in tailoring an insurance policy to ensure that it adequately protects against risks pertinent to the insured’s particular circumstances. By modifying the original provisions of the policy, endorsements help ensure that policyholders have coverage that aligns with their unique needs and exposures.