As of Friday the 12th of August, the law concerning the duty of disclosure for commercial clients will change. From this date The Insurance Act 2015 will come into force, heralding the greatest change to insurance regulation in over 100 years.
Why has The Insurance Act 2015 been introduced?
Many believed the existing regulations were outdated and did not reflect the current insurance market. By introducing The Insurance Act, the aim is to modernise and simplify the laws governing commercial insurance.
Who will this new Act impact?
One of the key purposes of this new regulation is to encourage cooperation between insurers and the insured during the contract negotiation stage. As a policy holder, if you are purchasing, amending or renewing commercial insurance on or after the 12th of August, you will need to take into consideration the implications of The Insurance Act 2015.
How will this new Act effect policy holders?
For those purchasing, amending or renewing insurance on or after the 12th of August, the most substantial change that The Insurance Act 2015 brings is to the ‘duty of fair presentation of risk’.
A fair presentation of the risk is one—
• which makes that disclosure in a manner which would be reasonably clear and accessible to a prudent insurer, and
• in which every material representation as to a matter of fact is substantially correct, and every material representation as to a matter of expectation or belief is made in good faith.
GGFi (Corporate Division)
are on hand to assist with your questions relating to business insurance and the changes that The Insurance Act will bring. The team are contactable via email firstname.lastname@example.org
or telephone 01708 925 320