What does this mean? 

Put simply, you need to tell your insurer anything that you know or can be reasonably expected to know, that would affect a decision to offer you insurance and the terms of a policy.  This duty is required until the insurer insures you, and before you renew, extend, vary or reinstate an insurance contract.

There is a short list of things that insurers aren't required to know, anything that:

-        Reduces the risk they insure you for; or

-        Is common knowledge; or

-        The insurer knows or should know as an insurer; or

-        The insurer waives your duty to tell them about.

What happens if you don’t tell the insurance company something?

Under the Insurance Contracts Act, your contract may be cancelled or if you make a claim, the amount paid to you can be reduced, and at worse both.  If your failure to tell the insurer is fraudulent, they may refuse to pay a claim and treat the contract as if it never existed.  The Marine Insurance Act is quite strict in that the element of fraud is not required to avoid the contract in its entirety.

The moral of this story is to be straight forward and upfront when you are unsure about what to include, think about what you would like to know if you were in the insurers’ position. 

H2 Insurance Solutions are here to navigate your business through testing times, to smooth out an uncertain sea.  Call us today on (07) 3123 6919 to find out how H2 Insurance Solutions can help you.

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