The principle of disclosure is one of the three main legal principles that apply to almost all insurance policies. Insurance policies are a contract between the insured entity and the insurance carrier, and they are considered to be contracts of utmost good faith.

Utmost good faith states that both parties in an insurance contract are obligated to act in complete honesty and to disclose all relevant facts. This is fundamental to the principle of disclosure, which adds that every insurance applicant has a duty to disclose to the insurer and its legal agents all material information. Material information is information that could reasonably affect the insurer’s underwriting decisions about whether and on what terms to ensure the applicant.

Concealment and misrepresentation occur when material information is not given to the insurance carrier or it is incorrect. An insurer can deny coverage for an insurance claim at the time of loss if it can demonstrate to the court that the insured committed either of these two offenses. In addition to the denial of a claim, it is a third degree felony in Florida to knowingly mislead an insurance carrier in an insurance application.

On our online quote form, we included a statement about the principle of disclosure to make online applicants aware of the importance to reveal truthful information to us in the application process. If you have any questions regarding this principle, please feel free to contact one of our licensed insurance agents.

Trust is essential in an insurance contract because the insured is purchasing a document that guarantees future action of the insurance carrier in the possible event of a claim. The insurance carrier is also trusting the information provided to them by the insured. As insurance agents, we take your trust very seriously and look forward to earning it through integrity.

The Agent Articles section of BearWiseLandscapers.com allows our insurance agents to provide practical information for landscapers. These agents can also obtain quotes and establish a custom insurance program for your landscaping business through our access to a variety of insurance carriers. This agent article is filed under (1) Insurance, and you can follow comments to it through the RSS 2.0 feed. Feel free to leave your own response below: