Which of the following best explains the term 'Endorsements'?

The term 'Endorsements' refers to changes or additions made to an insurance policy that can either modify existing coverage or introduce new coverage. This flexibility allows policyholders to tailor their insurance to better meet their needs or address specific circumstances that may not have been accounted for in the original policy. For instance, if a homeowner wants to add coverage for valuable items like jewelry that exceeds the policy's standard limits, they would use an endorsement to include that additional coverage.

The other choices do not accurately capture the essence of what endorsements are. They are not synonymous with policy exclusions, which detail what is not covered. Endorsements are actually integrated within the original policy, rather than being independent, and they apply to a wide range of insurance types, not solely to liability insurance.