For every insurance contract, there are certain “rules of conduct” (also called obligations) that impose certain duties on the policyholder (e.g. when submitting an application). You must take these obligations very seriously, as breaching them can, in extreme cases, result in you losing your insurance coverage. Obligations come in the form of legal obligations, which are regulated in the German Insurance Contract Act (Versicherungsvertragsgesetz), and contractual obligations which arise from the terms and conditions of your insurance contract. Obligations upon Conclusion of the Contract The insurer relies on the information you provide before conclusion of contract in order to conduct an appropriate risk assessment. The Insurance Contract Act and the Insurance terms and conditions therefore stipulate that you answer the questions asked in the online application correctly and in full. Consequences of Non-compliance with Obligations upon Conclusion of Contract In the event of a violation of the obligation to report circumstances relevant to the risk (e.g. incorrect or incomplete answers in the online application), the insurer can withdraw from the contract within one week and, in the event of a claim, be wholly or partially exempt from payment. The policyholder’s reporting obligations and the legal consequences of them violating these also apply to co-insured parties. Learn more about the obligations involved in Professional Indemnity Insurance for Digital Professions