Boat Insurance: Why are there two different disclosure clauses in the Policy?

It is a general requirement in insurance that a policyholder should be open and honest when disclosing information to an insurer in order to arrange their cover, as failure to do so may impact the operation of the policy.

The rules regarding the responsibilities of the policyholder for such disclosure, both in terms of the care required to ensure the information provided is accurate, and the actions the insurer can take if they fail to exercise such care, vary based on whether the policyholder is a ‘Consumer’ or ‘Non-Consumer’.

If you are a private individual, and the insurance you are arranging does not relate in any way to your trade, business, or profession, then you will be regarded as a Consumer. This means your responsibilities when disclosing information, and the remedies available to the insurer if you fail in those responsibilities, will be as set out in the ‘Disclosure by Consumers’ clause of the policy booklet.

Any policyholder who is not a private individual, or who is a private individual but is arranging the policy in relation to their trade, business or profession will be subject to the rules and remedies as set out in the ‘Disclosure by Non-Consumers’ clause of the policy booklet.

The Policy Booklet contains full details about how this cover operates, including any exclusions or conditions. Existing policyholders can download copies of the applicable Booklet for their policy by following the guide described here. Alternatively, to download the latest Policy Booklet, please click here.