It is important that you make a full disclosure of your risk to your insurer. Please see our guidance:
Your Duty of Disclosure and the Insurance Act 2015
The Insurance Act 2015 created the requirement for commercial customers to make a fair presentation of their risk to insurers.
Your Duty of Fair Presentation
It is your responsibility to provide complete and accurate information to insurers when you take out your insurance policy, throughout the life of your policy, when making a change to your insurance and when you renew your insurance.
Under the Insurance Act you are required to make a fair presentation to your insurance company which discloses every material circumstance which you know or ought to know relating to the risk to be insured. Material circumstances are those which are likely to affect the assessment and acceptance of the risk being insured.
- What you know: You will be expected to know any information which is known by individuals who are: (a) part of your senior management (i.e. individuals who play a significant role in the making of decisions about how your activities are to be managed or organised); (b) responsible for arranging your insurance (i.e. individuals who participate on your behalf in the process of procuring your insurance in any capacity).
- What you ought to know: In addition, you are expected to know any information that should have reasonably been revealed by a reasonable search of information available to you (whether the search is conducted by making enquiries or by other means). This could include any information held within your organisation or by any other person.
The disclosure you give us must be made in a manner which would be reasonably clear and accessible to a prudent insurer. Every material representation of a matter of fact which you make must be substantially correct and every material representation as to a matter of expectation or belief must be made in good faith. Failure to comply with the duty of fair presentation could mean that the policy is void or that insurers are not liable to pay all or part of your claim(s).
Information that you disclose must include:
Have you, your Directors, Partners or family members involved with the business or any other business ever:
- Had a proposal or insurance declined, cancelled or refused?
- Had any insurance or renewal refused?
- Had any special terms or conditions imposed by an insurer?
- Been convicted or charged (but not yet tried) or been given an Official Police Caution, in respect of any criminal offence?
- Been the subject of any County Court Judgments or Sheriff Court Decrees?
- Been declared bankrupt or insolvent or been disqualified from being a company director or been involved as owner Director or Partner with any company which went into receivership, administration or liquidation?
- Been involved in another company within 6 months before receivership/insolvency?
- Any other material circumstances to disclose?
- Had any incidents which have or could have resulted in a claim, whether insured or not?
Examples of other information that you should disclose includes:
- Are there any special or unusual aspects to your business activities?
- Have there been any changes to your business activities, including new processes, new products and new geographic areas of trading?
- New companies, subsidiaries, acquisitions, or disposals?
- Changes to your business premises, including a change in occupancy?
This list provides examples only; if in doubt, disclose information to us.
Do not leave questions unanswered, or intentionally leave out any information that you feel may affect your policy.
If you are in any doubt as to what may constitute a fair presentation, please feel free to contact us and we will endeavour to assist you.