Definition

An amendment made to your insurance policy that changes the terms of coverage. Endorsements tailor your policy to better suit your needs.

What to consider

  • Identify all potential sources of risk.
  • Quantify the exposure where possible.
  • Develop strategies to mitigate high risks.

Real world scenarios

  • A small business assessed its risk exposure before expanding to a new market.
  • An entrepreneur evaluated risk exposure when launching a new product line.
  • A homeowner reviewed risk exposure for property in a flood-prone area before buying insurance.

Related terms

Insurance & Financial Protection