Which of the following best defines an 'endorsement'?

An endorsement is best defined as a modification to a standard insurance policy. It is an integral part of insurance contracts that allows for specific changes or additions to the terms and coverage of the original policy. Endorsements can extend or restrict coverage, adjust policy limits, or include additional conditions that the policyholder and the insurer agree upon.

For example, a policyholder might add an endorsement to their homeowner's insurance to cover a newly acquired valuable item like a piece of jewelry. This addition modifies the standard policy's coverage to include that specific piece of property.

The other options do not accurately capture the essence of what an endorsement represents in insurance. A policy exclusion focuses on what is not covered in the policy, while a recommendation for insurance companies does not fit the legal context of policy modifications. Lastly, the reference to digital insurance management does not pertain to endorsements and instead points to technological advancements in handling insurance processes.