The Insurance Act updates the Marine Insurance Act of 1906 and will provide a more up-to-date framework for commercial insurance in the UK. It will apply to all business insurance policies taken out, renewed or amended from August 12, this year.
Aviva’s guide explains how the new law will focus on fairness, transparency and certainty governing the contracts between commercial customers and their insurers.
The guide seeks to set out some of the responsibilities of the business owner and explain what they need to do to comply with the Act, as well as outlining the way their broker and insurer will work with them to comply.
Angus Eaton, managing director of commercial lines at Aviva, commented: “We knew we needed to modernise the way business insurance worked and create a better system that helped move customer expectations on insurance cover from hope to certainty. We have been advocating a change in legislation for some time now so the Act is the culmination of lobbying and support by us and much of the industry.
“The Insurance Act is great news for business owners – and indeed the industry, because it will make insurance much more relevant to today’s world. In simple terms it encourages a closer relationship between insurer, broker and business owner to make sure everyone understands each other, can have faith in the information they share and in the event of a claim, understand exactly how the insurance cover will work.
“We have produced our guide to help explain how the Act will address some of the complexities that have existed around areas like warranties and pre-contract disclosures. We’ve also outlined some of the simple steps the business owner will need to take to comply with the Act, because there are responsibilities for them to meet, along with those of their insurer and broker.
“If you haven’t already my advice is take time to familiarise yourself with the details or speak to your broker for more information because the Insurance Act comes into force in August. It marks a new and exciting chapter in business insurance and we all need to be ready.”
The customer guide can be found here
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