What is an Endorsement? - Insurance Navy. In insurance, endorsement is a legally binding amendment or addition to an existing insurance policy that modifies the terms or scope of the original policy. It is also sometimes referred to as a rider or a floater. An endorsement can add, delete, exclude, or otherwise alter coverage. Endorsements can be issued at the time of purchase, mid-term, or at the time of renewal. They enable policyholders to customize their coverage to fit their specific needs better. For instance, a homeowner might add an endorsement to their home insurance policy to cover a valuable piece of jewelry or artwork that exceeds the standard coverage limit of the policy.
Endorsements can also add or limit the people or entities covered under the policy. Once an endorsement is issued, it typically stays with the policy for its entire term.