An Endorsement in insurance is a written document attached to an existing insurance policy that modifies, adds, or clarifies the terms and conditions of the original policy. Also known as a rider, addendum, or amendment, an endorsement can alter coverage limits, add new coverages, exclude specific risks, or make other changes as needed by the policyholder or insurer. Endorsements are commonly used to:

  • Add Coverage: For example, adding flood insurance to a homeowner’s policy.
  • Exclude Coverage: Removing coverage for a specific peril or risk.
  • Change Limits: Adjusting the amount of coverage provided.
  • Update Information: Reflecting changes such as a new address or updated property details.

Endorsements allow for flexibility and customization of insurance policies to better meet the needs of the policyholder. They are legally binding parts of the policy and must be agreed upon by both the insurer and the insured. By issuing endorsements, insurance companies can ensure that policies remain current and accurately reflect the policyholder’s coverage requirements.