What does the term 'endorsement' mean in an insurance policy?

The term 'endorsement' refers to a document that modifies the coverage or terms of the original insurance policy. Endorsements are used to add, remove, or change specific features of the policy without the need to create a brand new one. This allows insurers to tailor the policy to better fit the needs of the insured by specifying coverage details or excluding certain risks.

For example, if a policyholder wants additional coverage for a specific item, such as jewelry or business equipment, an endorsement can be applied to extend the coverage to include that item. Similarly, if there are changes in the insured's circumstances or in the insurance requirements, an endorsement can adjust the terms accordingly.

In contrast, other options address different aspects of insurance or are not relevant to policy modifications. Notifications for premium changes do not alter the coverage but simply inform the policyholder of pricing adjustments. Insurance fraud refers to deceitful practices, which are illegal and unrelated to policy modifications, while a certificate for policy beneficiaries typically serves as proof of coverage rather than altering the terms of the policy.