Under English law, a business insured (such as an insured who has bought insurance wholly or mainly for purposes related to their trade, business, or profession) has a duty to make a fair presentation of the risk to the insurer and disclose every material circumstance which it knows or ought to know after reasonable search. This is the case before cover is placed, when it is renewed and any time that it is varied.
A circumstance is material if it would influence an Insurer’s judgment in determining whether to take the risk and, if so, on what terms. If you are in any doubt whether a circumstance is material, we recommend that it should be disclosed.
Failure to disclose a material circumstance or fact may entitle an insurer to impose different
terms on the cover or proportionately reduce the amount of any claim payable. In some
circumstances an insurer will be entitled to avoid the policy from inception and in this event
any claims under the policy would not be paid.
When completing the application form and providing the information, please be aware that you have a duty to give a fair presentation of your risk, you must ensure that the content of the information which is being provided in the Proposal form and any supporting documentation is correct (where it relates to a matter of fact) and made in good faith (where it relates to a matter of expectation or belief).
Please also refer to our current Simcox Brokers documents which can be viewed at the following links: