Not upheld: General financial advice complaint against MARSH LIMITED

Decision detail

Summary

P complained that Marsh Limited mis-sold a business protection insurance policy that was unsuitable for its needs. P took out the policy in January 2024 after initial contact in November 2023, but discovered in November 2024 that the policy did not cover solar panel installation work, which comprised most of P's business activities. Marsh argued that P should have disclosed the nature of its activities, and the ombudsman agreed. The ombudsman found that P's representative only mentioned electrical contracting and plumbing without elaborating that most work involved solar panels, and Marsh's terms of business required full disclosure of all business activities. Since solar panel installation is a different risk from general electrical contracting, Marsh had no reason to know this was a material business need. The complaint was not upheld.

The Ombudsman's reasoning

As this was an advised sale, Marsh had a duty to assess P's demands and needs and recommend suitable cover. However, the assessment was based on information P provided. P was warned about the importance of providing complete and accurate information and reminded to disclose relevant information even if not specifically asked. Installing solar panels is a different risk from general electrical contracting and involves installing a particular product. Since P's representative only mentioned electrical contracting and plumbing without elaborating, Marsh had no reason to know that solar panel installation was a material part of P's business. It was P's responsibility to disclose this information.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website