This register of insurance is only intended as a general guide and does not and is never intended to replace your policy wordings. The precise terms of cover are contained within the policies, which will include warranties, conditions, endorsements and procedures. We would ask you to contact us should you need further information or clarification on any points. We have also included some useful information to help with administrating your insurance coverage so that its protection meets your needs.
All warranties must be complied with as failure to adhere to them can invalidate your policy and mean that any claim/s may not be paid out even if the breach of warranty was not relevant to the loss itself. If for whatever reason you cannot comply with any of them, you must advise us immediately so that we can discuss this with your insurer/s.
The description of your business activities/occupation must always be accurately described on all policies. If the business description we have for you is incorrect or not broad/detailed enough, please advise us straight away. Failure to have the correct business description noted on the policy can invalidate a claim.
Insurers must be aware of all premises/sites from where you operate your business. Please ensure that all these addresses appear on the appropriate schedules
It is essential that sums insured or declared values are maintained at an adequate level. Failure to do so could result in a claim being settled at a reduced amount or not at all. If the property is on a day-one or re-instatement basis (new for old), the declared value/sum insured must represent the cost of replacing the insured property as new (including the amount for debris removal costs and architect’s & surveyors fees if buildings are insured.) Where property is insured on an indemnity basis (second-hand), a claim settlement will take into account deductions for depreciation, wear & tear age and condition of the property and the sum insured calculated on that basis. A condition known as ‘average’ would apply in situations where you are found to be under-insured, and as an example, please read the following:
If you insure a building for £100,000, but in actual fact it should really have been £150,000 (i.e. under insured by a 1/3), then in the event of a partial loss e.g. small fire, the final claim settlement would reduce by a 1/3. Any excess would then be deducted. This highlights the need to ensure accurate sums insured.
Example: Building true rebuilding costs £150,000
Policy Sum Insured: £100,000 (two thirds of true rebuilding costs)
Payment: £8,000 (two thirds of what you would want)
Duty of Disclosure of Material Facts
Your Policies have been prepared on the basis of the information provided by you. It is important that this contains all facts which would be material to the risk. Under English Law, insurance contracts impose an onerous duty of disclosure on the Insured. It is your duty to disclose all material facts to Underwriters and you should not rely on casual observation of any material aspect of the risk, by your broker or other party, as satisfying this obligation. A material fact is:
‘A fact which may influence an Underwriter’s Judgement in their assessment of a risk’
Failure to comply with this obligation could prejudice your rights to recover in the event of a claim or allow Underwriters to void the Policy from its inception. The duty of disclosure is ongoing and applies from the moment discussion commences with insurers, prior to the issue of any policy document, throughout the period of insurance and at renewal. For your own protection, please adhere exactly to the Duty of Disclosure.
For example you should disclose any addition, disposal or change that may affect:
• Business activities or processes
• Buildings/premises or contents
• Fire or security installations or protections
• Dependence on customers &/or suppliers
• Overseas trading patterns, particularly involving North America
• Contractual liabilities &/or Hold harmless agreements
• Driving offences, particularly involving drink or dangerous driving
• Health factors that may affect driving
• Hiring, borrowing or leasing of plant & equipment either in or out
• Changes to sums insured especially increases
• Any incidents that would normally be covered by insurance whether claimed for or not
• Any criminal convictions
The list is not exhaustive, if you are in doubt as to whether a fact is material, please contact us.
Please bear in mind that cover is not effective until advised to and accepted by insurers
You should also note that should a new person become responsible for insurance matters within your organisation, you must immediately inform us to ensure that the new person has the requisite understanding of the duty of disclosure