What Is an Insurance Endorsement?

by Janet Hunt; Updated September 26, 2017
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An insurance endorsement is a change to an insurance policy that adds to or restricts the original coverage terms. It may not be part of the original agreement, however it becomes a legal part of the policy once it is added.

Adding Coverage

Some insurance endorsements add coverages for an additional premium to your policy, such as a rental reimbursement endorsement to your auto insurance. This endorsement adds coverage for a rental when your vehicle is being repaired.

Restrictions

An endorsement can be added to an insurance policy to restrict coverage. For example, many insurance policies have endorsements excluding coverage for losses caused by acts of war and terrorism.

Additional Insured

An endorsement may be added to an insurance policy to give coverage to another person. You might, for example, add someone to an auto insurance policy on an additional insured basis, giving them coverage if they drive your vehicle with your permission.

Change to Coverage

If you decide to change your coverage, an endorsement can be added to your insurance policy. An example would be an endorsement raising the amount of your deductible, the amount you are required to pay in the event of a claim.

Declarations Page

You can find a list of all the endorsements to your policy on the declarations page. Whenever an endorsement is added to your policy, the insurance company will send you a new declaration page explaining the endorsement.

About the Author

Janet Hunt has worked in the insurance industry for more than 15 years. Now serving in online marketing, she also has expertise in business and finance topics. Hunt received her Bachelor of Business Administration from the University of Phoenix. Hunt has also worked as a food services manager for a high school cafeteria and received her school nutrition certification in 2002.

Photo Credits

  • Alexey Klementiev/Hemera/Getty Images
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