In insurance, what is meant by the term "endorsement"?

The term "endorsement" in insurance refers to a written amendment or addition to an insurance policy that alters its coverage or terms. This can involve adding, removing, or changing specific provisions within the policy. Endorsements are crucial because they allow policyholders to customize their insurance coverage to better fit their individual needs or to respond to changes in risk. For example, if a policyholder acquires a new piece of equipment or moves to a different location, an endorsement can be used to update the policy to provide appropriate coverage.

The other options do not accurately define the term "endorsement." Assessing risk relates to underwriting, while provisions for natural disasters are typically defined within the main policy or separate riders. A fee for late payments is unrelated to the amendments or adjustments made to insurance policy terms and coverage.