What is the primary purpose of adding an endorsement to an insurance policy?

The primary purpose of adding an endorsement to an insurance policy is to change or add terms to the policy. Endorsements function as amendments that modify the original coverage. They can expand the scope of coverage, clarify the terms, or address specific situations that are not covered in the standard policy. For instance, an endorsement might provide coverage for additional insured parties, adjust limits of liability, or include specific perils that are otherwise excluded.

This adaptability makes endorsements a crucial component for policyholders, allowing them to tailor their coverage to better fit their individual needs, which reflects the dynamic nature of insurance needs as circumstances change, such as adding a new property or adjusting coverage amounts.