What happens to the coverage under an endorsement?

An endorsement is an addition or amendment to an insurance policy that modifies the coverage provided. It can be used to either restrict or expand the coverage depending on the needs of the insured. For instance, an endorsement might add additional coverage for certain high-value items, thereby expanding the policy's protection. Conversely, it might also limit coverage in some areas or for specific perils, effectively narrowing the policy's scope. This flexibility allows policyholders to tailor their coverage to better fit their specific circumstances or requirements.

Understanding endorsements is essential because they play a crucial role in the way insurance policies function, enabling the insured party to adjust their coverage as their needs evolve over time.