The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

MORALE HAZARD Definition & Legal Meaning

Definition & Citations:

Circumstance increasing loss-occurrence probability or abnormal loss due to an insurance policy applicant’s indifferent attitude after policy issuance. The insured being careless in locking the doors and windows when leaving home is an example. In common usage, morale hazard points to the insured party unconscious change in their actions or behaviors, versus a deliberate change to cheat the system or benefit from such circumstances. Contrast to moral hazard.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.