Material fact

Anyone seeking insurance must disclose all the material facts about the risk involved that he or she knows, or that they ought to know. In other words, the policyholder should not hide anything. The trouble is, certain facts which the underwriter may deem ‘material’ may not always be known to the policyholder. The best principle to follow is: ‘If in doubt, mention it ‘. If you are not sure whether a piece of information may or may not be relevant, tell your commercial insurance company anyway.