An occupation title does not always tell an insurer enough about the risk.

Two businesses with the same general occupation can undertake very different activities and present very different insurance exposures.

Why do insurers ask detailed questions about activities? #

Insurers need to understand matters such as:

• What work is actually performed.
• Where the work takes place.
• Who the clients are.
• What advice or services are provided.
• Project sizes.
• Hazardous activities.
• Work at height or underground.
• Products manufactured or supplied.
• Overseas work.
• Subcontracting.

These factors can be more important than the business title itself.

What happens if one activity falls outside insurer appetite? #

A small part of the business can sometimes make the entire risk unsuitable for a particular insurer.

For example, an insurer may comfortably cover most of a business’s activities but exclude one specialist service from its underwriting appetite.

Possible solutions can include:

• Finding another insurer.
• Separately insuring the activity.
• Negotiating an endorsement.
• Providing additional information.
• Adjusting the scope of cover.

Should I leave out an unusual activity if it is only a small part of my turnover? #

No.

Material activities should be disclosed accurately.

The percentage of turnover may help the insurer assess the exposure, but a low percentage does not automatically make the activity irrelevant.

Webber Insurance should be told about the full range of business activities so the insurance can be placed on an informed basis.