What is the main purpose of an insurance endorsement?

The main purpose of an insurance endorsement is to modify the terms of the policy. Endorsements serve as amendments or additions that can adjust coverage, add new conditions, or exclude certain risks that were originally included in the policy. This flexibility allows policyholders to tailor their insurance to better fit their specific needs without needing to rewrite the entire policy document.

For instance, an endorsement could be used to cover a newly acquired property, add additional insured parties, or change deductibles. By incorporating these changes through an endorsement, the core policy remains intact while still addressing the evolving needs of the insured. This is why endorsements are essential tools in the insurance industry, allowing for customization within a framework that remains consistent.