What legal remedy does an insurer have if a risk manager fails to notify them of hazardous work?

The legal remedy that allows an insurer to apply different terms for hazardous work hinges on the principle of risk management in insurance. When a risk manager fails to notify the insurer about hazardous activities, the insurer may need to adjust the coverage terms to account for the elevated risk. This adjustment ensures that the insurer accurately reflects the potential for loss associated with these hazards, thereby also protecting the insurer's financial interests.

Applying different terms can involve implementing higher deductibles, specific exclusions related to hazardous activities, or revising the coverage limits. This approach is aimed at managing the risk exposure rather than outright cancelling the policy or denying all claims, which could be seen as more drastic measures. Increased premiums are also a possibility, but they are usually a result of the risk not being understood at the time of policy issuance or during periodic reviews. By adjusting the terms instead, the insurer maintains a working relationship with the insured while ensuring that the risks are adequately covered.

Thus, the option to apply different terms not only acknowledges the insurer's right to respond to undisclosed hazards but also aligns with standard practices in insurance policy modifications, which are designed to protect both the insurer and the policyholder as circumstances evolve.