Carrying an insurance policy means you have a financial contract with a company to provide liability protection for your business or personal assets. These policies are written to address specific needs and carry very specific criteria for applicability. There are times you may need to extend coverage for exceptions to these situations, and an insurance endorsement will offer this extension. To understand an insurance policy endorsement definition, you must recognize the purpose of an endorsement.
Changing Your Contract
An endorsement is designed to change the existing terms of your insurance policy. This can happen when you first purchase the policy, throughout your coverage term or when you are ready to renew the coverage. It is considered a legal amendment and is as binding as the original terms. It can be used to delete, add, exclude or alter your coverage terms.
Areas for Endorsement
Generally speaking, any policy can have an endorsement added to it. There are situations when the endorsement carries a time limit that differs from the policy. This might be in a home renovation or rental situation where coverage is a short-term need. Other areas might include:
- Business Event/Property
An accurate insurance policy endorsement definition will take into account the specific details of the policy where you are altering coverage. Check with your agent for a better understanding of your options.