What is the main function of endorsements in an insurance policy?

The primary function of endorsements in an insurance policy is to add, reduce, or change coverage. Endorsements are modifications that can be attached to the original policy to fine-tune the coverage according to the specific needs of the insured or to reflect changes in circumstances. For instance, an endorsement could add coverage for additional risks, adjust coverage limits, or remove coverage for certain incidents. This flexibility is crucial as it allows policyholders to tailor their insurance to better suit their individual situations, providing more comprehensive and relevant protection.

While thorough definitions of insurance terms, listing exclusions, and establishing responsibilities are important aspects of an insurance policy, endorsements specifically focus on modifying the essence of the coverage provided. This distinct role of endorsements distinguishes them within the broader context of insurance documentation and policy structure.