To notify or not to notify.

The main trigger to effect insurance cover of a claim made against the company or firm is proper notification of circumstances to insurers. Once again, many of you reading this article will not consider that there is much of an issue here. However, place yourself in the shoes of the small businessman or woman. A director is aware of an issue, which may give rise to a claim. He is caught in a dilemma. Does he notify insurers, risking a substantial hike in his insurance premium and the prospect that at renewal he must remain with the same insurers; or does he tentatively notify insurers, hoping that there will be no claim and his premium does not suffer? Equally, will his failure to notify result in the whole policy being terminated, with the prospect of any future claim being repudiated due to an absence of insurance cover?