When a commercial insurance policy is renewed, to whom does the duty of disclosure apply?

In the context of commercial insurance policy renewals, the duty of disclosure is a mutual obligation that applies to both the insurer and the policyholder. This means that both parties have responsibilities to adequately disclose relevant information.

For the policyholder, this entails providing the insurer with any changes in circumstances or additional information that could affect the assessment of risk or the terms of the policy. This may involve informing the insurer of new risks, changes in the nature of the business, or alterations in property or assets. Failing to disclose pertinent information could result in complications, including potential claims being denied or the policy being voided.

On the insurer's side, there is also an expectation to communicate clearly regarding the terms, conditions, and exposures associated with the insurance cover being renewed. Insurers are required to ensure that policyholders are aware of the implications of any changes in their coverage or premium rates, as well as any shifts in underwriting criteria that may have occurred since the last policy issue.

In summary, both the policyholder and the insurer have a duty to disclose relevant information at the time of renewal, making it crucial for effective communication and understanding of the policy terms and conditions.