What does an insurance policy endorsement accomplish?

An insurance policy endorsement serves the purpose of modifying or adding coverage to an existing insurance policy. This can be essential for tailoring the coverage to meet specific needs of the policyholder or to reflect changes in circumstances. For instance, an endorsement can expand coverage limits, add new types of coverage, or clarify terms within the policy, thus providing flexibility and responsiveness to the insured's needs.

The addition of endorsements is a common practice in the insurance industry as it allows for the evolution of coverage without having to rewrite the entire policy. This mechanism ensures that the policyholder remains adequately protected as their situation changes or as new risks emerge.