01 / The meaning
What it means.
Under Australian insurance law, many business policies are subject to disclosure requirements concerning relevant matters known to the insured. Consumer insurance contracts instead involve a duty to take reasonable care not to make a misrepresentation. A small business purchase should not be classified solely by its size or the person completing the form. Ask which duty applies to the actual contract.
Provide accurate answers, explain uncertainties and check information supplied by colleagues rather than assuming a broker or insurer already knows it. Changes in activities, claims history, locations or contractual responsibilities can be significant. Obligations at renewal or when varying cover should also be considered. Consequences depend on the applicable law and facts; an omission does not justify claiming that every policy is automatically void.
02 / Put it in context
A practical example.
Hypothetical example: a consultant adds structural design to a practice previously limited to project coordination. Before renewal, the owner raises the changed work and asks what details are required for underwriting and the insured business description.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Confirm whether disclosure or consumer misrepresentation rules apply.
- Review the insurer’s questions and notice of obligations carefully.
- Keep a copy of answers, attachments and subsequent corrections.
04 / Start a useful conversation
A question for your broker.
Which information duty applies here, and have we explained our changed activities accurately?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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