What is the role of endorsements in a Commercial Policy?

Endorsements in a Commercial Policy serve the purpose of expanding or modifying coverage. They are specific provisions that modify the terms of the original policy, allowing policyholders to tailor their insurance to better fit their needs. For instance, an endorsement might add coverage for certain risks that are not included in the standard policy, or it could alter existing coverage to include additional limits or exclusions.

This flexibility is crucial for businesses, as their risk exposures can vary significantly based on their industry, operations, or changes in regulations. Endorsements ensure that businesses can adequately protect themselves without having to purchase an entirely new policy or rely solely on the standard coverage provided.

In contrast to the other choices, while endorsements can sometimes lead to implications like increased deductibles or changes in premium, their primary function is to refine and adjust the coverage provided, making option B the most accurate reflection of their role.