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If you’ve got a CCJ, a liquidation or a criminal conviction in your history and you need insurance, just talk to Prizm Solutions Ltd. 

It is increasingly common in these challenging times for businesses to get into difficulties, which can mean a CCJ (County Court Judgement) against them for an unpaid debt. The problem is that, unless you tell your insurance company about it, your policy could be terminated because it is classed as a ‘non-disclosure of a material fact’.

Exactly the same situation applies if you were previously the director of a business that went into liquidation or ceased trading (regardless of the circumstances). Insurers will always insist on being told full details . Depending upon how long ago it happened, and how much (if anything) was left outstanding to creditors, they will then make a decision on whether they want to insure you.

When it comes to criminal convictions, the Rehabilitation of Offenders Act means that minor convictions can be spent (wiped from your record), but more serious convictions will always have to be disclosed. And insurance companies take a dim view of criminals, especially if it involves white collar crime!

What people often fail to realise is that if you are insuring your home, everybody who lives with you has to declare details of whether they’ve had any of the above, it’s not just the policyholder. So, if your son gets a criminal conviction for beating up his mate after a night out, you must tell your insurance company if he still lives at home with you. And yes, they might decide they no longer wish to insure you.

The same thing applies if you are insuring a business. It’s not just the MD who signs the form, the duty of disclosure applies to all directors. We would always recommend you tell us about any issues relating to any members of your senior management team, irrespective of whether they are noted at Companies House as a legal director.

So what do you do if there is something you need to disclose and 99% of all known insurance companies tell you that they don’t want to quote? You call us, as we deal with specialist insurance companies who can help. Yes, you might have to pay a little bit more - but in most cases we’ll be able to get you a quote. 

Cards on the table though. In the event of it being a serious criminal conviction, we will always have a team discussion to make sure everyone at Prizm is happy to deal with you. If your conviction, for example, involves murder of an insurance broker, we may not want to insure you! But even in those circumstances, we will always try and point you in the right direction.

The upshot is, always tell your insurance company the truth, the whole truth and nothing but the truth. In the event of a claim, they will find out if you’ve lied to them, and the 2015 Insurance Act then gives them the right to terminate your policy and keep your premium. So, not only is your claim not paid, but they’d keep the money you paid them - so you lose and you lose.

If you need any insurance advice, just contact us. You can ring 01827 313931 or email us office@prizmsolutions.co.uk about any type of insurance, whether that’s business related like cyber insurance or motor fleet insurance, or personal insurance like legal expenses insurance or annual travel insurance. We’re happy to help.