What Is the Duty of Disclosure in Insurance?

The duty of disclosure in Australian insurance requires you to tell your insurer every matter you know, or a reasonable person in your circumstances would know, is relevant to the insurer's decision to provide cover and on what terms. For consumer insurance contracts, this has been replaced by a duty to take reasonable care not to make a misrepresentation.

Key Points

For business insurance: disclose all material facts relevant to the risk
For personal (consumer) insurance: take reasonable care not to misrepresent information
Applies at policy inception and at each renewal
Non-disclosure can allow the insurer to void the policy or reduce a claim
If unsure whether to disclose — disclose. It is always safer to over-disclose

What Happens If I Fail to Disclose Something?

If you fail to disclose a material fact and the insurer would not have issued the policy on the same terms had they known, they may cancel the policy, reduce the claim payout, or in cases of fraudulent non-disclosure, void the policy entirely and keep the premium. The consequences depend on whether the non-disclosure was innocent, negligent, or fraudulent. The Insurance Contracts Act 1984 governs remedies and requires proportionate responses from insurers.

What Do I Need to Disclose When Applying for Insurance?

For business insurance, disclose your full business activities (not just the main trade), any previous claims or losses, any prior insurance refusals or special conditions, the location and security of your premises, and any known upcoming circumstances that could affect the risk. For personal insurance, answer all questions on the application form honestly and completely. Your broker can guide you on what is material and how to present it clearly.

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Written by CoverMy Editorial Team

Last reviewed: 17 March 2026

Category: General Insurance Concepts

What Is the Duty of Disclosure in Insurance?

Key Points

What Happens If I Fail to Disclose Something?

What Do I Need to Disclose When Applying for Insurance?

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Related Questions

What Is the Duty of Disclosure in Insurance?

Key Points

What Happens If I Fail to Disclose Something?

What Do I Need to Disclose When Applying for Insurance?

Ready to get covered?

Related Questions