Insurance endorsements

Insurance endorsements are legally binding amendments that modify the coverage, terms, or limits of an existing insurance policy. Insurers issue endorsements to add, remove, or clarify coverages–examples include adding flood coverage to a homeowner’s policy and excluding high-value jewelry from theft protection.

Policyholders can request endorsements at any point during their policy term; insurers approve them based on underwriting guidelines. Endorsements often change premiums–Nationwide reports that adding earthquake coverage via endorsement can increase premiums by 30% to 60%.

Common personal auto policy endorsements in the US include roadside assistance and rental reimbursement options, as stated by the Insurance Information Database. Most commercial policies use endorsements for additional insured status or cyber liability extensions, as reported by The Hartford in its 2023 risk survey.

Each endorsement is clearly described with form numbers–ISO HO 04 20 adds water backup coverage to a standard HO-3 home policy. States regulate which endorsements insurers can offer; for example, California restricts wildfire-related exclusions through state-issued bulletins.

Canceling an endorsement usually requires written notice, and many carriers enforce a minimum notice period–Allstate sets this at 30 days. Endorsements override conflicting language in base policies; for instance, an endorsement restricting coverage for specific dog breeds supersedes the original liability wording.

Digital platforms now allow e-signatures for most endorsement forms, reducing processing times by up to 80%, according to Deloitte’s 2022 InsurTech report.