When taking out a short-term (non-life) insurance policy, most clients focus on getting the right cover at the best premium. However, one of the most critical — and often overlooked — aspects of insurance is the duty of disclosure.

In South Africa, this duty doesn’t end once your policy is activated. It is an ongoing responsibility, and failing to meet it can have serious consequences — including claims being reduced or even rejected entirely.

Let’s unpack what this means for you and your business.

What Is the Duty of Disclosure?

The duty of disclosure refers to your obligation, as the insured, to provide accurate, complete, and up-to-date information to your insurer.

At inception, this includes:

The correct replacement value of your buildings and contents

Details of security measures (alarms, electric fencing, access control)

Claims history

Business activities (for commercial clients)

But importantly, this duty does not stop there.

Why Ongoing Disclosure Is So Important

Many clients assume that once a policy is in place, they only need to review it at renewal. This is a dangerous misconception.

Your risk profile can change at any time — and insurers price and accept risk based on the information you provide. If that information changes and is not communicated, your policy may no longer accurately reflect your risk.

This can lead to:

Underinsurance

Incorrect cover structures

Breach of policy conditions

Claim repudiation or reduced settlement

In short: if your insurer doesn’t know about it, they don’t have to cover it.

Examples of Changes You Must Disclose Immediately

To protect your cover, you should inform your broker as soon as any of the following changes occur:

Personal Lines (Homeowners & Household Insurance)

Renovations or property extensions

Installation or removal of security systems

Change in occupancy (e.g. tenants, Airbnb, vacant property)

Acquisition of high-value items (art, jewellery, electronics)

Working from home or running a business from the premises

Commercial Insurance

Changes in business activities or operations

Increase in stock levels (especially seasonal fluctuations)

New machinery or equipment purchases

Changes in security or risk management measures

Moving premises or opening additional locations

Motor Insurance

Change in regular driver

Change in usage (e.g. private to business use)

Modifications to the vehicle

Change in where the vehicle is usually parked

The Reality: The Onus Is on You

A key point many policyholders are unaware of is this:

 The responsibility to disclose changes lies with the insured — not the insurer or broker.

Your broker is there to guide and advise you, but they can only act on information you provide. If changes are not communicated, insurers are entitled to assess claims based on outdated or incorrect information.

This is one of the most common reasons claims are rejected in South Africa — and it is entirely avoidable.

Why Annual Reviews Are Not Enough

While annual policy reviews are essential, they are not a substitute for ongoing communication.

Think of your insurance policy as a living contract — it needs to evolve as your life or business changes.

Waiting until renewal to disclose material changes can result in:

Periods where you were unknowingly uninsured or underinsured

Claims during the year being disputed

Financial losses that could have been prevented

How We Can Help

As your insurance broker, our role is to ensure your cover remains relevant, accurate, and effective at all times — not just once a year.

We assist you by:

Identifying material changes that need to be disclosed

Advising on appropriate cover adjustments

Ensuring sums insured remain adequate

Highlighting potential risks before they become claims

Advocating for you at claims stage

Most importantly, we make the process simple and proactive — so you’re never left exposed.

Let’s Review Your Cover Together

If it’s been a while since you’ve reviewed your policy — or if anything in your personal or business circumstances has changed — now is the time to act.

 We invite you to schedule a quick call with us to go through your current policy and ensure everything is up to date and correctly structured.

A 15–20 minute conversation today could be the difference between a paid claim and a costly rejection tomorrow.

Final Thought

Insurance is not just about having a policy in place — it’s about having the right cover, based on the right information, at the right time.

Staying proactive with your duty of disclosure is one of the simplest — yet most powerful — ways to protect yourself financially.