What is the main difference between implied duties and express duties in insurance?

The main difference between implied duties and express duties in insurance lies in their origins and how they are articulated in the policy. Implied duties are obligations that are recognized by common law, meaning they arise from the nature of the relationship between the insurer and the insured, as well as established legal principles. These are not explicitly stated in the insurance contract but nonetheless are understood to be part of the agreement.

In contrast, express duties are specifically outlined in the insurance policy; they are clearly stated obligations that both parties must adhere to. Such express duties might include the obligation to pay premiums or notify the insurer of any relevant changes that may affect coverage.

Understanding this distinction is critical for policyholders and insurers alike, as the existence of implied duties means that even if not explicitly stated, certain responsibilities still bind the parties involved in the contract. This has significant implications for the validity of claims because both types of duties can play a role in ensuring that the terms of the contract are upheld.