What is an endorsement in the context of insurance?

In the context of insurance, an endorsement serves as a written amendment to an existing insurance policy. It modifies the terms or coverage of the policy and can either add, remove, or alter specific provisions. This allows policyholders to customize their insurance contracts to better fit their individual needs or to reflect changes in circumstances. For example, if a homeowner adds a new room to their house, an endorsement can be added to increase coverage for this additional asset.

Other options, such as providing all-risk coverage, referring to primary insurance, or representing a type of professional liability insurance, do not accurately capture the definition of an endorsement within an insurance policy framework. An endorsement is specifically about adjusting the existing policy rather than representing a standalone form of coverage or type of insurance.