What are 'policy endorsements'?

Policy endorsements refer to modifications or additions made to an existing insurance policy that change its coverage terms. These endorsements can either enhance the coverage, restrict it, or clarify the provisions of the original policy. For instance, an endorsement might add coverage for specific risks that were not included in the original policy or adjust the benefits provided.

Understanding endorsements is crucial because they allow for flexibility in the policy to meet the insured's evolving needs without the need to draft an entirely new policy. They are formalized in writing and become part of the policy contract once added, ensuring that both the insurer and the insured are aligned on the terms of coverage.

Other provided options do not accurately define policy endorsements. New policies for different types of coverage represent a separate contract rather than alterations to an existing policy. Standard clauses are inherent parts of policies, not additions that modify them. Legal documents for renewals relate to the upkeep of coverage but do not change the terms of the existing policy.