What is the primary purpose of endorsements in an insurance policy?

Endorsements are specific provisions added to an insurance policy that allow for modifications to the terms of that policy. Their primary purpose is to add, delete, or change components of the coverage, enabling policyholders to tailor their insurance to better meet their needs. For instance, a policyholder may want to include coverage for a specific type of risk not initially covered or modify existing terms to reflect a change in circumstances, such as acquiring a new vehicle or changing the insured amount on a property.

This flexibility is crucial in the evolving nature of an individual's or business's risk profile, ensuring that the policy remains relevant and adequate over time. By utilizing endorsements, insurers and insured parties can adapt existing policies to suit changing requirements without having to start from scratch with a new policy.