Businesses Need To Check InsuranceCompanies in Coventry have been urged to check their insurance documents – or risk being left out of pocket.
Band Hatton solicitor Jon Wilby said a recent court case, where a recycling firm which had not disclosed relevant information during an insurance renewal and was then denied compensation after a major accident, is a warning shot for businesses. In the Court of Appeal case, Environcom had filled out its insurance documents in full and made a claim after a fire at its site led to its demolition and loss of equipment. However, the firm had not disclosed some of its practices, including the use of dangerous plasma cutters to dismantle fridges, and the court backed up the insurer’s argument that the policy had been invalidated. Wilby said: “What this case shows is that whoever has responsibility for filling out insurance documents needs to be absolutely certain they are covering the company properly. “In Environcom’s case, they correctly answered everything on their renewal sheet but did not inform the insurer about certain practices in the firm – and of previous incidents. “The judge in this case said the insurer had been negligent because it hadn’t effectively outlined that full disclosure was needed and had not prompted it in the forms. “But, irrespective of that, the non-disclosure meant Environcom was not covered and suffered heavy losses. “The lesson is to ensure that insurance is not just about form filling – whoever is a responsible needs a comprehensive understanding about duty of disclosure and must properly assess the needs of the company.” Media enquiries: Dan Donovan Advent Communications 2 Edison Building Electric Wharf Sandy Lane Coventry CV1 4JA Tel: 024 7663 3636 http://www.advent- # # # Advent Communications is a well-established public relations consultancy based in Coventry. In ten years it has built a reputation as a practical provider of news driven PR to a range of industry sectors. End
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