In Australia, the duty of disclosure is a legal obligation under the Insurance Contracts Act 1984 (Cth). It requires you to disclose every matter you know—or could reasonably be expected to know—that is relevant to an insurer’s decision whether to accept your risk, and on what terms.

This applies to all commercial and business insurance policies. If you fail to disclose relevant information, your insurer may void your policy or reduce or deny a claim, even if the omission was unintentional. This remains true even if the information seems minor or unrelated at the time.

Relevant information includes:

• Previous claims history, including those from prior businesses or locations

• Changes in business activities, such as new services, higher-risk operations, or increased revenue

• Property modifications, such as renovations, storage of flammable materials, or changes in occupancy

• Security or safety conditions, including the presence or absence of alarms, CCTV, or fire suppression systems

You are not required to disclose information that:

• Diminishes the risk

• Is common knowledge

• The insurer already knows or should know in the course of business

• Has been waived by the insurer

Recent Federal Court decisions, including Carter v Chubb Insurance Australia Ltd , have reinforced that insurers must act promptly when assessing non-disclosure. However, this does not reduce your responsibility to provide accurate and complete information at the time of application or renewal.

To ensure compliance, be transparent when applying for or renewing cover. Regular policy reviews with your broker help ensure your details remain accurate and complete. This protects your business and strengthens your position in a claim. If you’re unsure whether something needs to be disclosed, it’s best to raise it with your broker—better to over-disclose than risk a claim outcome.