Hazardous Activity

Hazardous activity refers to hobbies, sports, or occupations that an insurer classifies as high-risk because they increase the likelihood of injury, disability, or death. Common examples include scuba diving, BASE jumping, hang gliding, race car driving, piloting small aircraft, horseback riding, bungee jumping, parasailing, and certain types of construction, logging, offshore work, and mining.

Key takeaways

• Hazardous activities are often excluded from standard life and disability insurance or trigger higher premiums.
• Insurers may issue policies that explicitly exclude specified activities or require additional riders for coverage.
• Failing to disclose hazardous activities on an application is fraud and can lead to denial, cancellation, or reduced benefits.
• Specialized “adventure” or sports insurance can provide coverage for some extreme pursuits, often for an extra cost.

How insurers treat hazardous activities

Insurers evaluate risk during underwriting. If an activity is deemed hazardous they may:
* Deny coverage.
* Approve coverage but charge a higher premium.
* Issue a policy that excludes the hazardous activity from benefits.
* Demand adjusted premium payments, limit payouts related to the activity, or cancel the policy if nondisclosure is discovered after issuance.

Not all insurers classify the same activities as hazardous, and occasional participation (for example, trying scuba diving once on vacation) does not always result in a high-risk rating.

Disclosure and nondisclosure

Applicants must truthfully disclose relevant activities on insurance applications. Intentional omission (non-disclosure) is considered fraud and can have serious consequences:
* Claim denial
* Policy reclassification with back premiums
* Benefit limitations for death, dismemberment, or disability
* Policy cancellation

Common exclusions and special considerations

Insurance policies often include exclusion riders or specific limitations. Typical exclusions and limits include:
* Injuries resulting from private aircraft operations (excluding passengers on scheduled airline flights)
* War or acts of war
* Suicide attempts
* Normal pregnancy
* Work-related injuries (covered instead by workers’ compensation)
* Intentional acts causing disability

Substance abuse and alcoholism frequently have limits or time caps (often up to two years, sometimes none). Prescription medications that can be abused may also trigger coverage limitations if insurer suspects misuse.

Smoking is routinely treated as a hazardous factor: smokers face separate, higher rate schedules than non-smokers.

Alternative coverage options

For people who engage in extreme sports or high-risk travel, insurers and specialty providers offer:
* Adventure activities coverage or exclusion waivers tailored to hazardous sports and pursuits.
* Riders that extend a standard policy to cover specific activities for an additional premium.
* Specialty travel or sports insurance that focuses on medical and evacuation needs related to adventure activities.

Some policies may cover scuba diving without an extra rider for certified divers (e.g., PADI or NAUI), while most other adventure activities typically require an additional rider and cost.

Real-world example

An appeals court in India upheld an insurer’s denial of coverage after a claimant was injured during a hot air balloon ride. The court concluded that hot air ballooning is inherently hazardous and that the insurer’s exclusion applied, resulting in the claim denial.

FAQs

What activities are considered high risk for life insurance?
– Activities that significantly raise the chance of untimely death or severe injury, such as piloting aircraft, paragliding, bungee jumping, scuba diving, and racing. Definitions vary by insurer.

What is a high-risk policy?
– A high-risk policy covers insureds with elevated probability of claims (due to lifestyle, health, or behavior) and typically costs more and may include additional limitations or exclusions.

What can disqualify you from life insurance?
– Being deemed too high-risk during underwriting (because of health, hazardous activities, dangerous occupations, or lifestyle) or being discovered to have lied on the application can result in denial or cancellation of coverage.

Final advice

Always answer insurance applications fully and accurately. If you participate in hazardous activities, ask insurers how those activities are classified, whether exclusions apply, and whether an additional rider or specialty policy is available to ensure you have the coverage you need.