Which of the following best defines 'interline endorsements'?

Interline endorsements are designed to be applicable across multiple types of insurance coverages, rather than being limited to just one specific type. This flexibility allows insurers to customize policies more effectively, integrating various coverage aspects that might intersect. For example, an interline endorsement could enable a policyholder to enhance their general liability coverage or include features that are relevant to both property and liability insurance within a single document.

This broad application distinguishes interline endorsements from endorsements that are exclusive to particular kinds of insurance, such as those that would only modify auto policies or property coverage. By contrast, endorsements that are limited to property or liability coverage apply to those specific areas without the same versatility found in interline endorsements. Thus, option B accurately captures the essence of interline endorsements, reflecting their role in offering supplemental coverage across diverse insurance categories.