It is important to bear in mind that insurance requirements should be up to date and comply with the key insurance terms and conditions.

Always remember that it could be too late to change what went wrong after the occurrence has taken place. You cannot undo or reverse what has happened.

Have a Broker on board 

An insurance Broker is one of the most important persons to have on board to look after your day-to-day insurance requirements. Part of the Broker’s function is to take care of your interests and to provide sound advice and expertise regarding those insurance policies which are entrusted to the Broker.

Meet with your Broker 

Before you overlook something vitally important in your insurance policies, invite your insurance Broker to have a formal meeting to address your concerns. Brokers are always willing to offer their support, but they also need your undivided attention.

Re-visit your policies

During the meeting your Broker will re-visit the following aspects:

1. A brief overview of the policies that are currently active / in force.
2. The purpose or intention of having each of the policies as described in (1) above.
3. The present extent and content of the insurance policies.
4. Main aspects of what is covered and what is excluded in the policy / policies.
5. Any important warranties and / or onerous conditions that may apply.
6. Precautions that should be taken to prevent potential claims. Exercise due care.
7. In the event of an incident / accident who can be contacted whilst the Insured is away or out of reach. Other parties’ details e.g. family members, custodians or people who have been appointed by the Insured in the event of an emergency.
8. Platforms of communication the Insured can be contacted on. As per (7) above, it is important that whatever the circumstances, someone is immediately available and contactable. 

Terms and conditions to ensure compliance 

Timeous notification of incidents

Most policies, if not all, require prompt notification of incidents that could lead to a claim or potential claim. Late notification could be detrimental because it may affect the outcome of the settlement and / or payment of the claim. Encourage the Insured to promptly report all incidents to you as the insurance Broker.

Disclosure of change of risk

A change in the risk profile which enhances the Insured’s risk exposure can increase the potential for loss or damage. Be aware of non-disclosure of a material fact.

Premium payable as required

Premium is payable at inception or at renewal of the policy. Late or non-payment of premiums could result in the insurance policy being voided or cancelled, leaving the Insured without cover.

No misrepresentation of facts

Misrepresentation is a false or misleading description of a material fact (whether it is deliberate or not). 

Reasonable precaution taken

The Insured should take precaution as though the person is uninsured. The Insured should address any known defects or dangers that could be connected to the business, premises and / or equipment. It is advisable that immediate steps be taken to remedy the defect or remove the danger once it comes to the attention or knowledge of the Insured.

Warranties complied with

The definition of a warranty can be described in two aspects: 

1. A warranty is a form of a written guarantee that is usually issued between the seller and the buyer of goods. If the goods fail to achieve the specifications of what they are intended, the buyer has the right to call upon the seller to honour the warranty and make good the problem or fault. 
2. In short term insurance, a warranty has a different meaning. The Insured must comply with exactly what the warranty requires to be or to adhered to. Any deviation or non-compliance of the warranty could result in a breach and have negative consequences on terms of the policy. 

Within territorial limits

The geographical area or boundaries within which the policy will operate. Any incident of loss or damage outside the territorial limits will fall outside the scope of the policy.

With due care

The Insured should exercise all reasonable care and precaution in conducting their business.

No fraud

Fraud can be described as a criminal deception which is intended to bring about financial and / or personal gain to an individual or company. The discovery of fraud in an insurance matter can result in cancellation of and / or voidance of the policy indemnity.

Conclusion

A non-compliance with any of the above-mentioned terms and conditions could prejudice the Insured when it comes to policy indemnity and a potential claim.  It is crucial to clearly communicate these considerations to the Insured and to ensure that their insurance requirements are up to date and aligned with their needs and the policy terms and conditions.

Please contact your Broker directly, who will then approach Consort to assist with your requirements.

Consort Technical Underwriting Managers (Pty) Ltd (FSP 2273) underwritten by Lombard Insurance Company Limited (FSP 1596) an Insurer licensed to conduct non-life insurance business.

Original Article - Consort