What is endorsement?
Endorsement is a legal term, which has multiple applications. An endorsement can be a letter of recommendation, an extra provision to an insurance policy, an addition to a document or contract, or a signature on a check.
What is check endorsement?
Check endorsement is sometimes required that the payee write and sign his or her name on the back of a check, before cashing it or depositing it. Requirements depend on the bank. A check endorsement may also include restrictions.
For example, specify that the funds be directed to the payee’s account. Also, in case the check is signed over to someone else, the endorsement should include instructions on directing the funds to the new payee.
What is insurance endorsement?
An insurance endorsement is an addition to an insurance policy, which changes the original terms and/or scope. This can be used to add, exclude or otherwise alter coverage. This same principal applies to other types of contracts, in that an endorsement can be added at a later time and becomes a legal part of the original document terms or scope.
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