Many times there is a fine line between accepting and declining a claim. Therefore, it is imperative that you place your coverage with an insurer that knows your business, as well as employs competent claims personnel and defense counsel which can provide quick and accurate turnaround. The information provided in applications is used by underwriters of an insurance company to decide whether to insure a given professional. It also affects the scope of coverage made available and the price offered. The insurer relies on the warranties made in the application as a basis for underwriting the policy.
All warranties made by an insured in the application become part of the policy.
Coverage ultimately granted is predicated upon the assumption that the information contained in the application is both correct and complete, thus it is imperative that it is. If any false or incorrect information was supplied on the application, it may have the effect of automatically voiding the entire insurance contract, or precluding coverage for an individual claim. If required by application or policy form, agree to notify insurer only of material changes during the policy term. Qualify numerical responses especially ones requiring estimate of future conditions or those subject to unanticipated change during the policy term. Provide documentation of loss control activities as previously discussed.