What are endorsements in insurance policies primarily used for?

Endorsements in insurance policies are primarily utilized to add or modify coverage. This means that they allow policyholders to customize their insurance policy to fit their unique needs. For instance, if a homeowner wants to include protection for a new addition to their property, they would use an endorsement to expand their coverage. Similarly, if a business needs to cover new types of risks that were not originally included in their policy, an endorsement can adjust the terms and provide those additional protections.

While definitions of the insured location, outlines of claim procedures, and lists of exclusions are all important components of an insurance policy, they do not typically require separate endorsements for modification. Endorsements specifically focus on altering the coverage terms, thus enhancing or changing the protections offered under the standard policy.