According to marine insurance, should a loss be reported if discovered?

In the context of marine insurance, it is essential to report a loss if it is discovered, regardless of its perceived significance or whether a claim is intended to be filed for reimbursement. Reporting all losses aligns with the principles of good faith and transparency in the insurance process. This allows the insurer to assess the situation and maintain accurate risk assessments, which is critical for determining premiums and coverage for all parties.

Furthermore, failing to report a loss could lead to complications, such as disputes over coverage or potential denial of future claims, which underscores the importance of full disclosure in marine insurance practices. By requiring that all losses be reported, insurers can also better manage and mitigate risks associated with maritime activities. This obligation to report ensures that both the insured and the insurer maintain a clear understanding of potential and actual claims, fostering a cooperative relationship throughout the insurance period.