Construction Professionals: Disclosure To Insurers

A recent case gives guidance on what constitutes circumstances that construction professionals should disclose to insurers at renewal.

A Mechanical and Electrical Sub Contractor, LVE, did not disclose problems it was having with its contractor to its legal expenses insurer, Templeton, at renewal. Shortly after renewal, it did notify the problems as a potential claim. Templeton denied cover as it claimed that (a) LVE failed to disclose material circumstances known at renewal and (b) LVE failed to comply with the claims notification procedure - a breach of condition precedent under the policy entitling Templeton to decline an indemnity.