What does an endorsement in an insurance policy serve to do?

An endorsement in an insurance policy serves to amend coverage within the policy. It is a formal addition or modification that alters the original terms of the policy. Endorsements can clarify, expand, or refine the coverage provided, addressing specific situations that may not have been included in the original wording of the policy. For instance, an endorsement might add coverage for personal property when it was previously excluded or adjust the limits of liability.

This flexibility allows policyholders to tailor their insurance coverage more closely to their individual needs without the need to create an entirely new policy. Rather than limiting or canceling coverage, which would create gaps in protection, or merely extending the duration of the policy, endorsements play a critical role in customizing and enhancing insurance agreements for better alignment with the insured's requirements.