ABSTRACT
This chapter aims to bring the practitioner’s view of some of the issues in placing a risk presented under the existing insurance contract law. The common law expects a broker or intermediary to act with the skill, care and judgement of a reasonably competent broker/intermediary. As the majority of commercial risks are placed by brokers, their role is vital and can be summarised as: to explore and obtain a thorough understanding of the client’s business; to identify and agree the risks faced by the business (that can or cannot be insured); and to assist the client in identifying material facts. The chapter is mainly about the law relating to industrial business insurance. However, consumer insurances have been well served by the Financial Ombudsman Services and with the Law Commissions’ recommendation that there be no further duty of nondisclosure if the proposer answers the questions put to them by insurers truthfully he has little to fear.
