Addendum refers to an additional document or amendment, often referred to as an endorsement or rider, that is added to an existing insurance contract. It is used to modify, expand, or clarify the terms and conditions of the original policy.

This may include adding additional coverages, changing limits, adjusting prices, updating information, or incorporating specific provisions.

By utilizing an amendment, policyholders have the flexibility to tailor their protection to their changing needs. It provides transparency on how modifications or additions can be made to the existing policy, ensuring that the insured party understands the specific changes being made and their implications.