Who has the duty of fair presentation when renewing a commercial insurance policy?

In the context of renewing a commercial insurance policy, both the insurer and the policyholder share the duty of fair presentation. This concept is rooted in insurance law, which emphasizes transparency and honesty in the information exchanged between parties.

When a policyholder approaches renewal, they must provide a complete and accurate representation of risks and any changes that may have occurred since the previous policy was underwritten. This is essential, as it allows the insurer to assess the risk accurately and determine the appropriate terms and premiums for the coverage. Failing to disclose relevant information could lead to disputes later or even result in the policy being voided.

On the other hand, the insurer also has a responsibility to ensure that the information they present regarding the terms of coverage, limitations, and endorsements is clear and understandable. This dual responsibility fosters a fair exchange and helps maintain the integrity of the insurance contract.

Thus, when renewing a commercial insurance policy, both parties must engage in fair presentation to ensure a comprehensive understanding of the policy’s terms and the associated risks involved.