A duty of disclosure is at the foundation of what is required to establish a policy. An organisation and its management must fulfil this requirement to secure the coverage they seek from an insurer. Any subsequent agreement between the two parties will only be as strong as the trust imputed by satisfying this mutual contractual obligation.
In this article, we will explore the duty of disclosure within the context of the following coverages:
- Directors and officers liability insurance
- Employment practices liability insurance
- Management liability insurance
- D&O insurance for nonprofits
You may also find that similar concepts apply to a broad range of financial lines insurances, such as professional indemnity insurance, cyber insurance, and even crime insurance to a certain extent. Keep in mind, however, that each policy is strictly interpreted according to its own terms and conditions.
Contents
1 Duty of disclosure: A definition
2 When must a duty of disclosure be satisfied?
3 The importance of continuous disclosure
4 What are the consequences of non-disclosure and misrepresentation?
5 Who can represent an organisation in insurance matters?
6 Imputation and severability of knowledge
7 To disclose or not to disclose, that is the question
8 Duty of disclosure: An example
9 Conclusion
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