The Insurance Act 2015 was put in place last year to replace the Marine Insurance Act 1906. 

There has been lots of press regarding strained relations between insurers and the insured, so The Insurance Act 2015 has been drafted to ensure a better exchange of communication and information between insurance companies and their commercial clients. 

For a guide to underinsurance in the commercial market, click here

What will The Insurance Act 2015 achieve?

The Insurance Act 2015 will reduce the number of disputes that occur between insurance companies and their clients. 

The act will come into effect from 12th August 2016 and is the biggest change to insurance law in over a century. 

This saves legal costs and avoids the disruption of a lengthy court battle, which can cause inconvenience for both the insurer and the insured. 

However, it’s not all about policyholders. This new legislation aims to increase confidence within the insurance sector by modernising insurance law and making settlements fairer for commercial insurance clients. 

What does The Insurance Act 2015 mean for clients?

The act lays out what the client should and shouldn’t disclose when they are taking out new insurance, or renewing an existing policy. 

Examples of what must be disclosed to the insurance company by the client are:

  • Information, which can be revealed by a reasonable search – this could be in relation to an illness or death.
  • Things that are known about that are material to arranging. 
  • Relevant information that other senior management are aware of. 

When you take out or renew your insurance…

If you’re going to take out or renew your commercial insurance, it’s important disclose to your insurance company anything that you feel is relevant, otherwise your insurance may be deemed invalid. 

Also, make sure you check with any other colleagues or senior management if there is any additional information that you need to add to your application that you didn’t know about before. For example, if there are plans to move to a new business address. 

It is also a good idea to keep a record of all the correspondence between you and the insurance company, to increase the chance of any disputes being resolved quickly and efficiently.

Do not…

Do not leave any questions unanswered, or intentionally leave out any information that you feel may affect your policy. 

You shouldn’t, under any circumstances, falsely answer any questions that your insurance company asks you. 


As of the 12th August 2016, insurers will no longer be able to repudiate a claim for a breach of a warranty, unless there is evidence that the breach in question was relevant to the loss. For example, a flood claim would not be affected by a faulty smoke alarm. 

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