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Duty of Disclosure

What you must tell us

The law requires you to tell us everything you know (or could reasonably be expected to know in the circumstances) which is relevant to our decision to insure you and the terms on which we insure you. This duty applies before you enter into a contract with us, that is, before we accept your application and also each time before you alter or renew the policy. Each person named as the Insured has the same duty.

Penalty for non-disclosure

If you do not tell us everything necessary, we may:

  • reduce or refuse to pay a claim, or
  • cancel your policy.

If you act dishonestly, we may invalidate the policy from its beginning and not be bound by it.

You don’t need to tell us anything which:

  • reduces the risk
  • is common knowledge
  • we already know, or ought to know in the ordinary course of business, or
  • we indicate we do not want to know.

If you are not sure that something is relevant, it is best to disclose it anyway.

Co-Insurance (Average) Clause

A co-insurance (average) clause applies to the Building and Contents, Business Interruption and Electronic Equipment Sections of the policy. This means that if the Sum Insured for any items of property insured under the Building and Contents section; or the Gross Income insured under the Business Interruption Section; or any item of electronic equipment insured under the Electronic Equipment Section is less than 80% of its value at the time you take out this policy and at each renewal of the policy, then for any loss or damage you will be your own insurer for the difference, that is you will bear a rateable proportion of each claim.