And since if I try and make a transaction on the electrum multisig wallet, I still need to sign it with the hardware wallet then broadcast it; it is an added security. Is my understanding correct?
I am not a Ledger wallet user, but if it is 2-of-2 multisig wallet, you will need the two wallets to sign the transaction.
From what I've understood, your keys never leave the hardware wallet when signing transactions, correct?
Yes, yourLedger keys never go online.
Also, if the hardware wallet gets lost, I wouldn't be able to spend the coins too unless I restore it on another device. Correct?
Yes.