Is your business ready for the Insurance Act 2015?

On the 12th August 2016, the insurance sector will go through one of its biggest shake ups in 100 years. The Insurance Act 2015 will require businesses to disclose a greater amount of information to ensure that their insurance policies are valid.

What is the Insurance Act 2015?
The Insurance Act 2015 implements new rules and regulations which will define what businesses will be required to do before an insurance policy can begin or be renewed. This applies to all policies taken out on or after the 12th of August 2016 and governed by the laws of England, Wales, Scotland or Northern Ireland.

The Insurance Act 2015 imposes an obligation on policyholders to make a ‘fair presentation of the risk’ before a contract of insurance can be entered into or renewed.’ For a business to be insured they must carry out a reasonable search within their business to identify every material circumstance which is known or ought to be known.

The act provides insurance companies with further clarity on insurance policies, which leads to more appropriate cover for your business, less invalid claims and hopefully less disputes. Everybody wins.

For businesses a failure to comply with new rules would breach the terms of their insurance, which would invalidate the policy until the necessary steps have been taken to resolve the issues.

How can businesses ensure they are compliant?
It is vital that businesses have a clear and defined understanding of all the risks that are being insured:

  • Any of the processes of compiling and checking risk information should be documented and any concerns or failings should be noted.
  • It is also important that businesses define who is responsible for each stage of these processes and where all information can be found.

It would also be beneficial for your businesses to liaise with SG Chaseside Insurance Solutions to confirm any requirements of the business. If you require more information or have any queries about how The Insurance Act 2015 will affect your business, feel free to contact us on 0203 096 2830

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