Liability, the need for businesses to keep their insurers informed

Posted on February 13^th 2009

A recent case in the commercial courts has highlighted the need for businesses to keep their insurer informed of any developments that could lead to a liability claim being made against them.

The case of Aspen Insurance UK v Pectel shows how businesses can be caught short when deciding if they need to inform their insurer of a problem that may result in a claim in the future.

The insurers, Aspen, refused to cover a public liability claim against Pectel even though the company had the necessary cover in place, as the policy had a requirement the insurers be informed in writing immediately of any incidence that may result in a claim.

This was due to the event, a fire caused by Pectel, taking place in March 2004 with the resulting claim be filed in early 2007. Pectel did not then inform Aspen until March of 2007 that a claim for public liability against them was underway.

It is therefore imperative that businesses make sure that their insurer is kept up to date with events that may have a bearing, in regards to a claim being made, in the future.

Businesses can make sure that they have the right liability insurance in place by getting a liability insurance quote from insuremyliability.co.uk offering cover to over 400 professions.

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