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Do I need to tell insurers everything about my business?

Insurers will rely on the details you tell them to create a policy specific to your needs and will make sure the cover fits your business. You have a duty to disclose all Material Facts. Drayton Reed can help you find positive features to pass on to insurers such as good health and safety management to help reduce premiums. Failure to pass on information could result in cover being invalidated.

 What are Material Facts?

Insurers will take all the information you give them and assess whether they wish to insure your business and at what price and terms. Any information that will affect that assessment is material to the risk and must be disclosed.

Why do I have to state my turnover and wages figures?

A large firm with a high turnover and many employees has more potential to generate claims than a small company. Turnover and wages are used to assess the size of the company and are used as rating factors to determine the premium to be paid. This relates mainly to liability, indemnity and business interruption insurance.

Why do I need a D&O policy?

There are over 200 offences in the Companies Act for which a Director can face claims, many of which give rise to criminal prosecutions. It is public policy for the Health and Safety Executive to prosecute individuals where they feel there has been neglect of duty and poor management. For example, where management have been told about a potentially dangerous situation but did not address it before someone was hurt or even killed. A Director does not have to directly cause an accident to be responsible for it. 

What is the rebuild sum insured of my house?

Your property should be insured for an amount which would be sufficient to rebuild your property in the event of a total loss. This does not bear any relation to the sale price or the value of the property.

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