What legislation applies to commercial customers when applying for insurance?

The Insurance Act 2015 is the relevant legislation that applies to commercial customers when applying for insurance. This act introduced significant reforms to insurance law in the UK, particularly in the areas of transparency and fairness.

One of its primary objectives is to ensure that all parties in the insurance process act in good faith, which is particularly important for commercial customers who might have complicated insurance needs and a higher value at stake. Under this legislation, insurers must provide clear information about the policy terms, and customers have a duty to disclose material facts accurately.

This framework is critical for commercial insurance because it sets the standards for how insurers and insured entities interact, ensuring fairness and clarity in transactions that may involve substantial sums and complex terms. Other options, while relevant in their own contexts, do not apply specifically to the commercial insurance sector in the same comprehensive way as the Insurance Act 2015.