top of page

Providing

Information

15 April 2023

Last revised

minutes

4

Reading time

When underwriters ask questions, you, the owner, must respond as accurately as possible. But there is also a positive duty on you, as insured, to speak up about matters which may affect the risk. It’s important not only to understand the nature and extent of that duty if you’re yacht is to stay covered, but also to ensure that your broker isn’t a weak link in the chain.

minutes

4

Reading time

15 April 2023

Last revised

When underwriters ask questions, you, the owner, must respond as accurately as possible. But there is also a positive duty on you, as insured, to speak up about matters which may affect the risk. It’s important not only to understand the nature and extent of that duty if you’re yacht is to stay covered, but also to ensure that your broker isn’t a weak link in the chain.

  • Insurance contracts are based on the principle of the utmost good faith, requiring parties to provide honest and complete information.

  • Underwriters may not have detailed knowledge of each specific risk, so insured individuals have a duty to disclose material information.

  • A fair presentation of the risk includes disclosing all material circumstances or providing sufficient information to prompt further inquiries by a prudent insurer.

  • Disclosure should be clear and accessible to the insurer, and statements must be made in good faith.

  • Material circumstances are those that would influence a prudent insurer's judgment in determining whether to accept the risk and on what terms.

  • The insured's knowledge refers to the company's senior management, including captains, departmental heads, and insurance brokers.

  • Claims history, crewing arrangements, and yacht valuations are among the practical matters that need to be disclosed.

  • Yacht valuations can be contentious, and a specific reference to the agreed value should be included in policies.

  • Breaching the duty of fair presentation can lead to remedies for the underwriter if it directly influenced their decision to enter the contract.

  • Consequences for breaching the duty of fair presentation vary based on intent, ranging from no liability with no premium return to reduced claim payment or returned premiums.

  • The insured's knowledge refers to the company's senior management, including captains, departmental heads, and insurance brokers.

  • Claims history, crewing arrangements, and yacht valuations are among the practical matters that need to be disclosed.

  • Yacht valuations can be contentious, and a specific reference to the agreed value should be included in policies.

  • Breaching the duty of fair presentation can lead to remedies for the underwriter if it directly influenced their decision to enter the contract.

  • Consequences for breaching the duty of fair presentation vary based on intent, ranging from no liability with no premium return to reduced claim payment or returned premiums.