Client Accountabilities
It is important that you advise our office of any material alterations in the business or products or indeed any aspect which may have a bearing on the adequacy of your insurance program. Your Insurers have assessed and accepted the risks on the basis of the information given and any variation of these details could prejudice a claim and therefore may be rejected.
Alterations to your situation that need to be reported to us include:
- Acquisition of new companies and/PR mergers in which you are involved in Australia or overseas.
- Purchase, construction or occupancy of new premises: alteration, vacation, temporary unoccupancy, extension or demolition of existing premises.
- Increase in values in excess of insured limits for Buildings, Plant and Stock.
- Substantial removal of stocks or equipment to other locations.
- Contractual liabilities, including leases, hiring agreements and the like.
- Hire, lease or borrowing of plant or equipment, charter of aircraft or waterborne craft.
- Granting of indemnities or hold-harmless arguments.
- Substantial changes in processes, occupancy, products or extension of business operations.
- Alterations, amendment to or disconnection of fire or burglary protection systems.
- Proposed installation of pressure plant or new key machines.
- If Fidelity Guarantee is insured, any alteration to the system of checks, supervision, audits and the like must be advised to the Insurers immediately.
The agreements referred to in 5, 6 and 7 on the previous slide often contain obligations which are not immediately obvious.
It is important that these agreements be referred to us so that we may assess the extent of your liability and determine whether your policies provide adequate cover.
Important Notice
For an insurer to decide to take on a risk and then make an informed assessment of the risk it faces under a contract of insurance, (and hence calculate the premium it should charge) it is pertinent that all relevant matters are disclosed in the utmost good faith to it. The party seeking insurance (or renewal or variation of it) cover has the duty to make full and frank disclosure of all matters known to them at the time. This duty does not fall upon the broker and not upon the broker who acts on that party’s behalf.
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