Insurance Check Endorsement: Simplifying Claim Processing
Insurance check endorsement refers to the process of signing and writing specific information on the back of an insurance check to authorize its negotiation. For instance, when you receive an insurance check for a property damage claim, you\’ll need to endorse the check by signing it and adding the words \”For Deposit Only\” to restrict its usage and protect against fraud.
Insurance check endorsements play a crucial role in claim settlement, ensuring that the intended recipient receives the funds and reducing the risk of unauthorized access to claim proceeds. Historically, the requirement for endorsements emerged to prevent fraudulent check cashing and disputes over claim payments.