TABLE OF CONTENTS It is very important to understand that an insurance policy is a legal document, and insurance negotiations should be approached on this basis. Insurance contracts have a detailed legal background of both case law and common law in the interpretation of their provisions. Professional insurance advice from a reputable source, whether an insurance company or an insurance broker, is essential if problems are to be avoided.
It is important to understand that insurers are separate commercial organizations in competition and each trying to make a profit. This affects the insurers' approach to loss prevention and it does mean that some insurers will have different priorities in individual cases.
Insurers trade in a competitive market - there are some 200 separate insurers in the market in the UK. Because insurance is such a competitive business, insurers do not have unlimited freedom to act. They occasionally have to accept less than the optimum in terms of safety. However, an individual insurer can always refuse the business if it is judged that the conditions are bad - and this is done from time to time.
There are occasions where somewhat less serious problems are encountered and the client refuses to take any action. In these circumstances statutory bodies like the Health and Safety Executive or the fire brigade can enforce their views through legislation. Insurers are not in that position. They can and do increase premiums for bad risks, but they...
