Hunter Nelson explains how lying on an insurance application can void your entire policy. If you misrepresent what your business does, the insurer can treat the policy as if it never existed, even if the new activity isn't explicitly excluded. Accurate disclosure of all business operations is essential.
Now, if you guys go and get an insurance policy and rate yourself wrong, does that mean it only covers for what you're rated for? So for example, if I'm an insurance agency and I have general liability, and tomorrow I decide to start building decks or open up a trucking company, is that going to exclude it? Technically, the policy language is not going to probably have those operations excluded. It does— there's too many industries Too many different things to say I'm going to exclude anything that's not insurance. But what it is going to do is it's going to say material misrepresentation or insurance fraud is excluded. It will void the policy like it never existed.
