Insurance Endorsement

An Insurance Endorsement is a written document issued by an insurance company at the request of the insured to modify, supplement, or alter certain contents of an already issued insurance policy. It is commonly used to change the name of the insured, insurance amount, cargo description, shipping route, insurance coverage, insurance period, etc. In foreign trade practice, when a letter of credit requires or the actual shipment situation does not match the original policy information, the exporter needs to apply to the insurance company for an endorsement to ensure document consistency and smooth settlement of exchange. Usage scenarios include: changing the beneficiary, increasing or decreasing the insured amount, modifying the shipment date or vessel name, etc. Precautions: The endorsement must be officially issued by the insurance company with an official seal, and it is usually valid only when used together with the original policy; the content of the endorsement must not conflict with the terms of the letter of credit, otherwise the bank may refuse payment. Unlike a Certificate of Insurance, an endorsement is an amendment to an existing policy, not an independent certificate of coverage; it is also different from a Cover Note, which is a temporary insurance certificate. The date of the endorsement generally must not be later than the date of shipment, otherwise it may affect the commencement of insurance liability.