And have you reviewed your insurance as a result?
Why would I need to? Well, policyholders are now under a duty to make a ‘fair presentation of the risk’ to insurers when taking out insurance. Simply put, the disclosure must be of every material circumstance which the policyholder knows or ought to know.
This is anything which would influence the judgement of a prudent insurer in determining whether to take the risk and, if so, on what terms. There is no specific limitation on what constitutes a material circumstance, but it would typically include any factors pertaining to the risk to be insured including prior claims, your financial history, convictions of key personnel and your business activities.
Essentially, to provide the best protection for any business owner, an insurer or broker needs in depth knowledge and understanding of their client’s business practices to ensure they can source the most comprehensive protection based on the business needs, highlight areas of exposure and recommend any additional covers that should be considered.
Our advice? Take the time to carefully identify who within your business is best placed to identify any information that may be relevant to insurers when considering the particular risk and type of policy. You must consult with anyone who has particular knowledge about the risk to be insured. This will include your employees such as risk managers or the employees who are involved in negotiating the insurance.
If you need any free advice regarding your current insurance product, call us on 0151 236 7838 or email email@example.com and we’ll be happy to help.