Key Takeaways
– An endorsement can be a signature that authorizes transfer of a negotiable instrument, an amendment to a legal document (like an insurance policy), or a public statement of support (for a candidate, product, or service).
– Common endorsement types: signature (checks), insurance riders/amendments, license endorsements (driving privileges), and commercial/personal endorsements (celebrity or influencer promotion).
– How you endorse something matters: different endorsement methods carry different legal and practical consequences (e.g., “blank” vs. “restrictive” check endorsements; riders that increase premiums).
– When giving or accepting endorsements, watch for fraud, disclosure and advertising rules, contract terms, and tax consequences.
What is an endorsement?
An endorsement is any action or written addition that indicates approval, authorization, or a change to an existing instrument, contract, or public statement. In business and law it often means a signature or stamp that transfers rights (for example, the signature on the back of a check). In other contexts it can be an amendment to a contract or policy or a public declaration of support for a person, idea, product, or service.
Types of endorsements
– Signature endorsements: Signatures on negotiable instruments (checks, drafts) that transfer payment rights. Variations include blank, special, and restrictive endorsements.
– Insurance endorsements (riders): Written amendments to an insurance policy that add, remove, or modify coverage terms or beneficiaries.
– License endorsements: Additions to a professional or driver’s license that grant specific privileges (e.g., motorcycle endorsement).
– Promotional endorsements: Paid or unpaid public support by a public figure, influencer, organization, or media outlet (e.g., a newspaper endorsing a candidate, a celebrity promoting a product).
Signature endorsements (checks and negotiable instruments)
What it is
– A signature on the back of a check indicates the payee’s acceptance and authorizes the transfer of funds. It is also the mechanism used to negotiate (transfer) many types of negotiable instruments under commercial law.
Common types and legal implications
1. Blank endorsement: Simply signing your name on the back. It makes the check payable to bearer—anyone holding it can cash or deposit it.
2. Special (or nominative) endorsement: Signing and indicating the new payee (e.g., “Pay to the order of Jane Doe” + signature). This transfers the check to a specific person.
3. Restrictive endorsement: Adding words that restrict how the check can be used (e.g., “For deposit only to account #12345” + signature). This limits payment to a particular account.
4. Mobile-deposit or bank-specific notations: Many banks require you to add “For mobile deposit only” or similar to limit fraud and accidental double-presentment.
Practical steps: How to endorse a check
1. Confirm the payee name(s) on the front of the check. If it lists two people joined with “and,” typically both must sign. If it lists “or,” only one may be required.
2. Turn the check over and sign on the designated endorsement line.
3. For deposit-only: write “For deposit only,” and add the account number under your signature to make it restrictive.
4. For forwarding to another payee: write “Pay to the order of [Name],” then sign your name (special endorsement).
5. If depositing via mobile app, follow the bank’s instructions—many require “For mobile deposit only” and your signature.
6. Keep a copy (or photograph) until the deposit clears, and monitor your account for proper credit.
Insurance endorsements (riders and policy amendments)
What it is
– An insurance endorsement (often called a rider) is a written amendment to the original insurance policy that changes coverage, adds benefits, modifies exclusions, or updates beneficiary designations.
Examples
– Adding a monthly income continuation benefit for beneficiaries.
– Adding an exclusion or expanding coverage for a particular peril.
– Adding a named driver or vehicle to an auto policy.
Practical steps: How to add or change an insurance endorsement
1. Review your current policy and identify the change you want (new coverage, beneficiary change, added insured item).
2. Contact your insurer or agent—describe the requested amendment and ask for available options and the premium impact.
3. Request written documentation outlining the endorsement language and cost.
4. Review the endorsement carefully (effective date, limits, exclusions) and sign any required forms.
5. Pay any required additional premium or administrative fee.
6. Keep the endorsed policy (or rider) with your insurance documents and note the effective date.
License endorsements (driver’s licenses and professional licenses)
What it is
– A license endorsement grants additional rights, privileges, or qualifications beyond the base license (e.g., the ability to operate a motorcycle, drive a bus, or carry certain cargo).
Examples and practical steps: Obtaining a driving license endorsement (motorcycle)
1. Check state/local DMV requirements for the specific endorsement (testing, training hours, medical forms).
2. Complete required coursework or safety training (often mandatory for motorcycle endorsements).
3. Schedule and pass any written knowledge tests and road skills tests required.
4. Submit application, required identity documents, and applicable fees to the licensing authority.
5. Receive the updated license or an endorsement notation on your existing license.
Endorsements as promotion and marketing (celebrities, influencers, editorial)
What it is
– Public figures or organizations publicly supporting a product, service, or political candidate. This ranges from paid celebrity sponsorships to newspapers’ editorial endorsements and influencer promotions on social media.
Key steps and practical guidance for brands and endorsers
1. Align values: Match the endorser’s audience and reputation with the brand and message.
2. Contract: Draft a clear agreement covering scope, compensation, content approvals, usage rights, exclusivity, and duration.
3. Disclosure: Ensure endorsements comply with advertising disclosure rules (e.g., the U.S. FTC requires clear and conspicuous disclosure of material connections). Use explicit language such as “#ad” or “Sponsored” where required.
4. Monitor performance and compliance: Track deliverables, audience response, and ensure legal and platform-specific rules are followed.
5. Maintain records for taxes and compliance—income from endorsements is taxable and often generates Form 1099 in the U.S.
Legal and practical considerations
– Fraud & forgery: Blank endorsements allow theft; use restrictive endorsements to reduce risk.
– Multi-payee rules: How payees are joined (“and” vs. “or”) affects who must sign.
– Document changes: Endorsements to legal documents should be in writing, signed, and dated; retain copies.
– Insurance costs: Adding benefits usually increases premiums; removing coverage can lower premiums but increases risk.
– Regulatory compliance: Promotional endorsements must comply with the FTC’s Endorsement Guides (and equivalent rules in other countries).
– Taxes: Payments for endorsements are generally taxable income. For insurance/policy changes, premium payments may have tax implications—consult a tax professional.
– Revocation and limits: Endorsements that modify rights (e.g., transferring negotiable instruments) may be difficult to undo; some endorsements are conditional or limited by law.
Practical examples
– Check endorsement: Jane receives a paycheck made out to “Jane Doe or John Doe.” She can sign and deposit it herself (only one signature required because of “or”).
– Insurance rider: A homeowner adds a flood rider to cover basement flood damage; premium increases accordingly.
– License endorsement: Sam completes an approved motorcycle safety course and adds a motorcycle endorsement to his license after passing the DMV road test.
– Marketing endorsement: A fitness influencer signs a contract to promote a supplement line; posts include “#ad” to disclose compensation.
Fast Fact
One of the earliest well-known athlete endorsements was Honus Wagner promoting Louisville Slugger bats in the early 1900s; his likeness later appeared on a rare baseball card that became historically valuable. (See Smithsonian / USA Today coverage.)
How to endorse different things — step-by-step checklists
A. How to endorse a check (quick checklist)
1. Verify payee names and how they’re joined (“and” vs. “or”).
2. Sign your name on the endorsement line on the back.
3. For deposit-only protection, write “For deposit only” and your account number (restrictive).
4. For another payee, write “Pay to the order of [Name],” then sign (special endorsement).
5. Follow bank/mobile deposit instructions (add “For mobile deposit only” if required).
6. Retain proof (photo or copy) until funds clear.
B. How to add an insurance endorsement (quick checklist)
1. Identify the specific change you want.
2. Contact your insurer or agent for options and pricing.
3. Request the endorsement in writing and review details.
4. Sign documents and pay any additional premium.
5. Place the endorsed policy in your records.
C. How to obtain a license endorsement (quick checklist)
1. Research your jurisdiction’s requirements.
2. Complete required training/courses (if any).
3. Pass written and/or practical tests as required.
4. Submit application, supporting ID, and fees.
5. Receive updated license or endorsement notation.
Risks and how to mitigate them
– Lost or stolen checks: Use restrictive endorsements and bank deposit limits; report missing checks immediately.
– Misleading endorsements in advertising: Always disclose material connections and follow FTC guidance to avoid enforcement actions.
– Policy rider misunderstandings: Read endorsement language carefully; get clarifications in writing.
– Legal disputes: Keep copies of all signed endorsements and communications.
The Bottom Line
An endorsement is a flexible tool used across finance, insurance, licensing, and marketing to authorize transfers, modify agreements, or declare support. The form you choose—blank or restrictive, rider or revocation, signed promotion or editorial endorsement—has important legal, financial, and ethical consequences. When endorsing or accepting an endorsement, follow the required steps, get things in writing, protect against fraud, and comply with disclosure and regulatory rules.
Sources and further reading
– Investopedia, “Endorsement” (Paige McLaughlin): https://www.investopedia.com/terms/e/endorsement.asp
– Allstate, “What’s an Insurance Endorsement?”: https://www.allstate.com/resources/insurance/end-of-coverage/endorsements
– New York State Department of Motor Vehicles, “Driver license restrictions for medical conditions”: https://dmv.ny.gov/driver-license/driver-license-restrictions
– U.S. Federal Trade Commission, “Endorsement Guides: What People Are Asking”: https://www.ftc.gov/tips-advice/business-center/advertising-and-marketing/endorsement-guides
– Cornell Law School — Legal Information Institute, Uniform Commercial Code, Article 3 (Negotiable Instruments): https://www.law.cornell.edu/ucc/3
– Smithsonian Magazine, “A Brief History of the Honus Wagner Baseball Card”: https://www.smithsonianmag.com/history/brief-history-honus-wagner-baseball-card-180964779/
– USA Today, “Honus Wagner baseball card sells for $6.606 million”: https://www.usatoday.com/story/sports/mlb/2016/08/03/honus-wagner-baseball-card-sells-for-6606000/
– Influencer Marketing Hub, “What’s an Influencer?”: https://influencermarketinghub.com/what-is-an-influencer/
If you’d like, I can:
– Provide templated endorsement language for checks, insurance riders, or marketing agreements.
– Walk you through endorsing a specific check or drafting a disclosure for a sponsored post.