What is an "endorsement" in insurance terms?

In the context of insurance, an endorsement is a document that modifies the coverage provided under an existing insurance policy. This can involve adding, deleting, or altering the terms of coverage. Endorsements are beneficial as they allow policyholders to tailor their insurance to better suit their specific needs or circumstances without having to rewrite the entire policy.

For instance, if someone acquires a new piece of equipment that requires additional coverage, an endorsement can be added to the current policy to include that new equipment without replacing the entire document. This flexibility is key in adapting the policy to life changes or new risks the policyholder may face.

The other options do not accurately define an endorsement. Insurance fraud refers to dishonest acts designed to deceive an insurer, a renewal agreement pertains to the continuation of a policy beyond its initial term, and a formal complaint involves grievances against an insurer, none of which capture the essence of what an endorsement is within the insurance framework.