endorsement
Definition
An endorsement is a signature or written statement on a document that transfers rights or adds special instructions, most commonly seen when someone signs the back of a check to deposit or cash it. In the insurance world, an endorsement is an add-on to your policy that changes or expands your coverage beyond the standard terms.
Example
If your business insurance policy doesn't cover flood damage, you might buy a flood endorsement to add that protection, or if a customer writes you a check, you endorse it by signing the back before your bank will accept it.
Watch Out
When signing any endorsement on a legal document or contract, you may be taking on personal responsibility for that document, so always read what you're signing before you put your name on it.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.