What Does Insurance Endorsement Mean?
An insurance endorsement is a change in the policy initiated by the policyholder. The change adds or deletes a provision which changes the price of the premium. The provision added is called a rider. The endorsement is attached to the original policy upon approval of the insurer.
Insuranceopedia Explains Insurance Endorsement
If a person thinks that they cannot afford paying for the premium of a policy but still wishes to maintain it, they can modify it by way of an endorsement. They might ask the insured to lower the cost of risk coverage. In return, the insurer will now charge for a lower premium.
But another person might think of adding a provision. In regards to car insurance, the insured might want to include other people to be covered, like members of the family or a paid driver in case of an accident. This type of modification will increase the cost of the premium.