What is an endorsement in insurance?

An endorsement in insurance refers to a policy amendment that provides additional coverage or modifies existing terms within a standard insurance policy. This is significant because endorsements can tailor a policy to better fit the specific needs of the insured party, allowing for customized protection. For instance, if a homeowner wants to add coverage for personal property located outside of their home, they would seek an endorsement to include this additional coverage in their homeowner’s policy.

This is why the choice indicating that an endorsement is a policy amendment for additional coverage is the correct understanding of the term. Options related to late payments, premium receipts, or denied claims describe different aspects of the insurance process but do not pertain to the concept of endorsements, which focus specifically on changes or enhancements to coverage.