The single most important thing on your insurance policy

What’s in a name?

In the case of insurance, it could be the difference between nothing and everything!

An insurance policy is a legal document and contract that means every word matters in a court of law, especially the insured’s name and details!

According to Berkley Insurance Australia,”If the Insured name is incorrect or not a legal entity, then the insurance contract is not valid and may not respond to claims.”

“Near enough is not good enough. A claim or writ will only ever be served against the legal entity so for the insurance policy to respond to the policy must be in the legal entity name.”

So what constitutes a “legal entity”?

A legal entity name is the name of the entity that appears on all official documents or legal papers. It can a person’s full name (as per their license or birth certificate) or a registered company name, Berkly Insurance advises.

“The registered company name may be different from a business name, and if it’s a company, the name must use the full terminology including proprietary limited (Pty Ltd or any variation).

“Only the names highlighted in bold are legal entities!

1. Brian Johnson Trading as Johnson’s Accountants
2. Johnson’s Accountants
3. Johnson’s Family Trust t/as Johnson’s Accountants
4. Johnson and Partners Accountants Pty Ltd
5. Johnson and Partners Trading Trust
6. Brian Johnson & Fred Smith T/as Johnson & Smith Accountants

“Trusts & Trading names are NOT legal entities in their own right. A trust must have a company or a person as a trustee. ABN Lookup is not a reliable reference policy as it lists Business or Trading names which can be different from the legal entity name.”

For more information and to check your broker has the correct legal name on your insurance policy contact Allsafe Insurance Brokers today.