An insurance policy is a contract with your insurance company which carries very important clauses and obligations. 

The Policy Obligation 

Of utmost importance is your obligation to notify the insurer of a new claim or ‘a circumstance which might give rise to a claim’. 
The onus is on you to notify the insurer within the time limit set in your policy and in line with the policy terms and conditions. 

Claims against you 

When a claimant confirms their intention to claim compensation against you and your business, this will usually take the form of a complaint or an allegation/s of negligence levelled at you. 
Identifying a ‘circumstance which may give rise to a claim’ against you is not always as straightforward but is nonetheless important. 

When to notify insurers 

You must tell us immediately, as soon as you become aware of the problem, regardless of your own view on blame or liability, then we will notify your insurer. 
Whilst there is no consistent approach among Insurers on the exact timing of notification provisions in policies, policy wording is usually very stringent and we therefore, strongly recommend that all notifications are made as soon as it is practically possible. 

Failure to inform the insurer 

Failure to notify promptly can result in a dispute and a claim being rejected. 
However, we are aware that sometimes business owners choose to cover the costs, without making a claim. Even if this is what you decide to do, it is wise to inform us at HI Commercial to keep us in the loop with any issues within your business. 
Should you wish to make a claim in the future, after delaying, this could give the insurer good reason to wriggle out of making a payment towards your claim. 

Failure to gain insurer permission 

There are a few things you must not do without the permission of your insurer: 
Admit liability 
Take any action which could prejudice your insurer’s position or their ability to investigate the claim 
Enter into claims correspondence without your insurer’s permission 
Settle or offer to settle 
Disclose your insurer’s involvement or details of your policy 
Any breach of the policy terms and conditions can lead to a dispute with an insurance company so we strongly recommend taking time to read the claims conditions in your policy document. 
If you would like support, or further information, please call our team of professional commercial insurance brokers on 01482 247 477 or email [email protected]
At your service, at your side – commercial insurance with a personal touch. 
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