What are 'endorsements' in insurance?

Endorsements in insurance refer to additional clauses or modifications to a standard insurance policy. They are used to alter, add to, or clarify the coverage provided by the original terms of the policy. This can include expanding coverage for specific risks, changing the policy limits, or adjusting the terms and conditions that govern the policy.

For example, a homeowner might add an endorsement to their homeowners policy to cover additional structures on their property or to extend their liability coverage. Endorsements are essential because they allow policyholders to customize their insurance coverage to better suit their individual needs and circumstances.

The other options do not accurately capture the definition of endorsements. Basic policy terms refer to the foundational elements of the insurance contract, while exclusions detail situations or items that are not covered by the policy. Regulatory requirements for insurers pertain to the rules and standards that insurance companies must comply with, which is separate from the concept of endorsements in individual policies. Therefore, the definition of endorsements as additional clauses or modifications is the most accurate and relevant in the context of insurance.