What does the term "endorsement" mean in the context of insurance?

In the context of insurance, "endorsement" refers to an amendment or addition to an insurance policy that alters its terms or coverage. This can involve adding specific protections, changing exclusions, or updating limits to ensure that the policy meets the specific needs of the insured. Endorsements can enhance the original policy by providing broader coverage or addressing particular risks that were not included in the standard policy.

For instance, if a homeowner wants to ensure that their home office equipment is covered, they might include an endorsement that specifies this coverage. This process demonstrates how endorsements serve a vital function in customizing insurance policies to better fit the policyholder's circumstances and requirements.