Insurance Endorsement
What Does Insurance Endorsement Mean?
An insurance endorsement is a modification to a policy requested by the policyholder. This change may add or remove a provision, potentially affecting the premium cost. Any added provision is referred to as a rider. Once approved by the insurer, the endorsement is attached to the original policy.
Insuranceopedia Explains Insurance Endorsement
If a policyholder believes they cannot afford the premium but wants to retain the policy, they can request a modification through an endorsement. For instance, they might ask the insurer to reduce the scope of coverage, which would result in a lower premium.
Conversely, a policyholder may choose to add a provision to the policy. In car insurance, for example, they might request coverage for additional individuals, such as family members or a paid driver, in case of an accident. This type of modification would increase the premium cost.
