
Pre-Contractual Duty to Disclose of Information
Insurance quotations & terms secured by S.A. Faughnan (Brokers) Ltd. will be based on the information supplied
by the Proposer / Applicant / Insured.
We would remind you that, as a Proposer / Applicant / Insured you are required to answer all questions posed by
us or the insurer honestly and with reasonable care.
Specific questions will be asked. Where you do not provide additional information (after being requested to do so)
it can be presumed that the information previously provided remains unchanged. Every circumstance is material
if it would influence the judgement of a prudent insurer in fixing the premium, or determining whether they will
take the risk. Note that it is ‘any’ prudent insurer, not just the insurer who has been offered the risk and
something can be material even if disclosure would not necessarily have led to an increased premium or
declinature of the risk. Refer Material Fact / Material Information below.
Commercial Insurance
Please note that your duty is not limited to answering specific questions that may be asked by S.A. Faughnan
(Brokers) Ltd. or by the insurer.
The duty of disclosure arises during negotiations preceding the placing of the policy, right up to its conclusion,
and then during the renewal process. It usually terminates on the conclusion of the contract, i.e. once the insurer
has agreed to accept the risk and set the terms, price and level of participation but also arises again if you wish
to make changes to or extend the policy. It may also continue throughout the period of the insurance if the policy
terms contain a particular clause stating that any change in the circumstances must be advised to insurers.
If you have any doubt whether information is material fact, or whether the duty of disclosure continues throughout
the period of a particular policy, we recommend you to disclose the information anyway, as failure to do so may
lead to the policy being avoided by insurers.
You should ensure that information provided by you, e.g. when completing and signing any proposal
form/questionnaire, or otherwise confirming information to insurers, is complete, accurate and provided within an
agreed timescale.
Please tell us if the person in your organisation responsible for arranging insurance changes so that we may
explain the duty to that person.
A Material Fact / Material Information in insurance is any information that could influence the decision of a
prudent insurer to provide coverage or affect the terms of an insurance policy. It is crucial information that an
insurer relies on to assess the risk involved in insuring a person, business, or property.
Please be mindful of the requirement to notify us of any MATERIAL CHANGE (Disclosure of Information) that
applies at inception of a new policy and at each subsequent renewal date. “Material Change” will be interpreted
as being a change that takes the risk outside what was in the reasonable contemplation of both you and the
insurer when the contract was concluded. An insurer may refuse a claim made by you under a contract of
insurance where there is a change in the risk insured, including as described in an “alteration of risk” clause, and
the circumstances have so changed that it has effectively changed the risk to one which the insurer has not
agreed to cover. If you are ever in doubt about how to answer a question, or whether or not something needs to
be disclosed, the safest course of action is to disclose it. Please contact us if you have any questions.
S.A.Faughnan (Brokers) Ltd. is regulated by the Central Bank Of Ireland
Directors: S.A. Faughnan, M.R. Faughnan, D.A. Faughnan.
Registered in Ireland No. 88953. Registered Address (as above).
