What is the term for an endorsement that limits the liability of the endorser?

The term for an endorsement that limits the liability of the endorser is a qualified endorsement. In a qualified endorsement, the endorser adds specific language indicating that they do not assume full liability for the instrument being endorsed. This often includes phrases such as "without recourse" or similar terms that make it clear that the endorser is only endorsing the instrument to facilitate its transfer and is not guaranteeing payment if it is dishonored.

Using a qualified endorsement protects the endorser from being held financially responsible if the instrument is not honored by the drawee. This type of endorsement is particularly useful in commercial transactions where risk management is crucial.

In contrast, full, conditional, and absolute endorsements imply differing responsibilities or none at all, and do not provide the same limited liability disclaimer as a qualified endorsement does.