What does Full Disclosure refer to in insurance?

Full Disclosure in insurance refers to the practice of informing clients of all relevant policy facts. This principle ensures that individuals understand the terms and conditions of their insurance policies, including coverage limits, exclusions, and any potential risks associated with the policy. It is essential for clients to be fully aware of these details so they can make informed decisions about their coverage and financial protection.

When full disclosure is practiced, the relationship between the insurer and the insured is based on transparency and trust. Clients are empowered to ask questions and seek clarification on any areas they may not understand, leading to better outcomes and satisfaction with their insurance decisions.

The emphasis on providing all relevant information helps avoid misunderstandings and disputes down the line, particularly when it comes time to file a claim. Clients who are well-informed about the intricacies of their policy are more likely to feel confident in their coverage and engaged in the process.