Endorsement
Definition
A written amendment to an insurance policy that modifies coverage, terms, or conditions. Endorsements can add, remove, or change coverage provisions.
Example
A commercial general liability policy is issued with a standard $1 million limit. An endorsement is added to increase the limit to $2 million and add coverage for completed operations, modifying the original policy terms.
In Practice
Endorsements are the primary method of customizing insurance policies. They must be in writing and attached to the policy. Common endorsements include coverage additions, limit increases, named insured changes, and exclusion modifications. Endorsements override conflicting policy language. Policyholders should keep all endorsements with their policy documents.