Which term refers to an insurance policy extending coverage for specific additional risks?

The term "endorsement" accurately refers to an addition to an insurance policy that provides coverage for specific additional risks beyond what is covered in the standard policy. Endorsements are used by policyholders to customize their insurance coverage to fit their specific needs. For instance, if a homeowner wants to add coverage for a valuable item like jewelry or make adjustments to their liability coverage, they can request an endorsement which will typically detail the additional coverage being provided, any modifications to the original terms, and any additional premiums that may apply.

This flexibility allows policyholders to enhance their protection and ensure they have adequate coverage for unique circumstances or items. Understanding endorsements is crucial for both agents and clients as they navigate policy options to better safeguard against potential risks that may not be included in the base policy.