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Vincent2013, JustAnswer Expert
Category: Law
Satisfied Customers: 213
Experience:  Qualified solicitor and barrister (non-practising) with 7+ years experience
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Are "micro businesses" included under the The Consumer Insurance

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Are "micro businesses" included under the The Consumer Insurance Act?
I have found statements referring to them and the possibility of including them in the future, but cannot trace anything to suggest this has been agreed, only that the Law Commission’s review of insurance contract law, which will affect such interests, is still ongoing.

Hi, thanks for your question. my name's XXXXX XXXXX it's my pleasure to assist you with it this morning.


Micro-businesses are not included under the current act. Pursuant to s.1, the definition of a consumer insurance contract is one that is between an insurance provider and "an individual who enters into the contract wholly or mainly for purposes unrelated to the individual's trade, business or profession".


You are quite correct, the Law Commission and Scottish Law Commission did look at pre-contractual disclosure and unfair terms in relation to micro-businesses and published a 2009 issue paper on the subject. However, whilst the Law Commission's review of insurance contract law is ongoing, they have now abandoned the proposal that micro-businesses have some of the same protections as consumers. This decision was set out in paragraph 1.12 of their consultation report of June 2012 where they state that they are "no longer proceeding with this proposal" and set out the reasons why. The full reasons are then particularised in more detail in Appendix A.


You can find the June 2012 report here:


I hope this answers your question. If so, I would be very grateful if you could leave positive feedback as it's an important part of our process and allows me to obtain credit for my work. It won't end our conversation and you can continue to ask me further questions if you require any clarification on the above.

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Customer: replied 4 years ago.

Thank you very much for your swift response. The subject has been discussed in various quarters, all with an unsure conclusion. Your help is massive.