Failure To Disclose Material Facts To Insurer Voids Coverage For Delivering Pizza

Failing to advise an insurance company of material facts relating to the policy may result in a loss of coverage at a time when it is needed most.

In Euler v. Economical Insurance, 2021 ONSC 3018 (CanLII), the applicant had an automobile insurance policy with the respondent insurer which was issued in 2014, and renewed annually thereafter. The application form required the applicant to indicate any business use of the insured vehicle. The applicant left that area of the form blank, indicating no business use. The annual premium for the policy ($733) was rated on the basis that the vehicle was used primarily for "pleasure" with a stated two-kilometre commute to work. This information was endorsed on the Certificate for Automobile Insurance for each successive term.