If you are a Commercial client then it is important that you understand and are aware of the law regarding Duty of Disclosure.
Common circumstances that would qualify you as a commercial client are:
- Appointment as a Director of a Limited Company
- Appointment as a Business Partner
- Operator of a vehicle Fleet
- Self-employed professions such as Trademen, Motor Traders, Taxi Drivers and Landlords
Under English Law, the Duty of Disclosure refers to your requirements where insurance is concerned, in ensuring your Underwriter (and by proxy your Broker) is aware of any material information which would be relevant when assessing your risk for acceptance and price. The disclosed material information will not always affect your price but may remain relevant to your policy.
Your Duty of Disclosure is continual and does not expire once the policy has been incepted. In the event of an adjustment during the policy term, or an extension/renewal to the period of insurance, you have a legal obligation to advise of any information that may influence the Underwriters decision in honouring your request(s).
When providing information for assessment such as a quotation request or a proposal form, it remains the Policyholder’s responsibility to ensure the accuracy of all details provided and that any relevant disclosures are made.
During the policy duration, should it transpire that there has been a breach of the Duty of Disclosure, your Underwriter reserves the right to void your insurance from inception or increase your premium accordingly. Should you policy be voided, any claims arising during the uninsured period would defer to the Policyholder and be their responsibility to settle, regardless of the cost. In the absence of dishonest conduct, your Underwriter would be obliged to return any paid premium in relation to the policy that has been voided, subject to deductions relevant to the administration where applicable.
For further information regarding the Duty of Disclosure, do not hesitate to contact us on 01782 280 280 to discuss.