Warranties on Insurance Policies

Despite having plain English policy wordings these days it is often hard to completely understand what you are actually insured for and sometimes when you think you do you then come across a Warranty and wonder what that means. Insurance Warranties restrict the cover provided by your policy and so they are good for the insurer but generally bad for you. Often they are policy terms ‘precedent to liability’ which means basically if you have not done what they warranty says before the loss or damage happens there will be no insurance cover in place for that loss or damage. So don’t wait until you have had a claim to read them because then it could be too late.

 
Having a claim that is not paid by your insurer is one of the worst things that can happen to you and if this is after a serious fire or large theft your business may never recover. So it’s best to know and understand the limitations of your policy from the start and even though you won’t want to do it we recommend that you always read your policy and policy schedule, along with any other documentation supplied to make sure you fully understand it.
 
If there are any terms or condition that you have not fully understood or any that you simply can’t comply with you should tell us immediately so that we can make the necessary adjustments to your policy or provide an alternative solution so that you do comply.
 
Below we have put together a list of common insurance policy warranties along with an explanation as to how they could apply to you.
 
Please feel free to use this list as appoint of reference and if you are unsure as to how any of these may apply to you please contact us.
 
This is not a definitive list and we will keep updating it so please come back regularly to check the most up to date information.
 
Alarm Warranty
An alarm warranty is included on this policy which requires that your alarm system is properly set whenever the premises are unoccupied and that the system is of an agreed standard and maintained under contract. Other requirements exist within this warranty and it is important that you read, understand and comply with them throughout the policy term, for cover to apply.
 
Minimum Security Warranty
A minimum security warranty applies on this policy which requires a certain standard of locks and other physical protections, and that they are put into operation whenever the premises are unoccupied. It is important that you read, understand and comply with the requirements throughout the policy term, for cover to apply.
 
Unoccupancy warranty
This policy includes an unoccupancy warranty which restricts cover after the premises have been unoccupied for a certain period and/or requires regular visits and some services to be turned off with water drained and waste materials removed. It is important that you read, understand and comply with the requirements throughout the policy term, for cover to apply.
 
Waste Warranty
A Waste Warranty applies on this policy which requires you to ensure that waste does not present a fire risk. Specific requirements exist within this warranty and it is important that you read, understand and comply with them throughout the policy term, for cover to apply.
 
Overnight Exclusion Warranty – Goods in Transit 
This policy includes an overnight theft warranty under which theft from the vehicle is excluded unless you comply with certain requirements. Please check that you understand and comply with the conditions shown in the full wording of the warranty throughout the policy term, for cover to apply.
 
No smoking warranty
The No Smoking warranty under this policy places requirements on you to ensure that smoking does not take place in the premises and that designated smoking areas have appropriately managed fireproof receptacles. Please refer to the full wording attached and ensure that you read, understand and comply with the requirements throughout the policy term, for cover to apply. 
 
Keys Removal Clause
A Keys Removal clause applies on this policy which requires that keys to vehicles on the premises are kept secure. Other specific requirements exist within this warranty and it is important that you read, understand and comply with them throughout the policy term, for cover to apply.
 
Bone fide Sub contractors Checking clause
Where you use Bona-Fide sub contractors, you must ensure that they hold Public Liabilty insurance cover for, at least, the same indemnity limit as this policy and that it covers the work carried out. Limits to the total amount of work sub contracted also exist and you should ensure that you have read and understood the requirements in the full wording. 
 
Heat Warranty
A Heat Warranty applies to this policy which imposes strict conditions on the precautions to which you must adhere each and every time that heat is used.  You must also ensure that a thorough examination is carried out following each use of heat. To ensure that your insurance will cover you, you should read, understand and comply with the requirements throughout the policy term, as stated in the full wording of the warranty.
 
Money accompaniment 
There is a warranty on the policy that requires additional security protections when money above the stated limit is in transit, including to and from the bank. Please ensure that you read, understand and comply with the warranty throughout the policy term, for cover to apply, as indicated in the full wording.
 
Deep Fat Fryer Warranty
There is a warranty on this policy which requires strict fire protections in relation to use of a Deep Fat Fryer, including fixed upper-limit thermostatic cut-offs, regular servicing & maintenance of fryers and extraction ducts and appropriate fire-fighting equipment. Other specific requirements exist within this warranty and it is important that you read, understand and comply with them throughout the policy term, for cover to apply.
  
 

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