Free guide
What is a statement of fact?
A statement of fact sets out the information the insurer has relied on to offer cover. If anything in it is wrong, a claim could be reduced or refused.
What it usually contains
- Business description and trade
- Turnover, wage roll and number of employees
- Premises: construction, age, security and fire protection
- Claims history
- Standard declarations, such as no previous refusals, insolvency or criminal convictions
Why the client must check it
Under the Insurance Act 2015, the client has a duty of fair presentation. The statement of fact is their record of what was told to the insurer. If it is wrong, the insurer can reduce a claim in proportion, change the terms or, in serious cases, avoid the policy.
Example
A bakery's statement of fact says "no deep-fat frying" and "timber frame: no". In reality there is a fryer and part of the building is timber framed. Both are material facts that need correcting before cover starts.
Common errors brokers find
- An old turnover or wage roll figure
- Wrong construction or roof type
- Claims missing from the last five years
- Standard declarations the client cannot actually agree to
- A trade description that doesn't match what the business really does
Check statements of fact against the schedule automatically
PolicyTools.app reads schedules, wordings and statements of fact and flags what needs attention.
Start 14-day free trial