Business insurance policies traditionally contain Conditions Precedent to Liability (Conditions) and/or Warranties.
- Waste Condition/Warranty – will require you to remove and store waste in a certain manner
- Portable Heather Condition/Warranty – will ban the use of these items in certain parts or all of your premises
- Alarm Condition/Warranty – will require you to maintain your system and ensure it is activated when the premises are unattended
The new Act includes some changes to the way warranties operate which provides a fairer position for policyholders – but we shouldn’t get too excited – it’s important to remember that warranties and conditions will still remain in the majority of policies – they are unlikely to disappear altogether – and they can still cause big problems.
Why is compliance with these terms so important? Quite simply, if you fail to comply with a policy condition or warranty and need to make a claim, you can still be rejected. If the claim is big it could mean the end of your business.
What is the solution?
- Speak to Malago about Condition and Warranty free policies
- Employ a good insurance broker (we are good) – a diligent broker will
- Negotiate a policy with as few conditions as possible (we do this)
- Make sure you understand the clauses and check that you can comply (we’ll help with this)
- Make sure your management team are aware of the requirements and have procedures in place to ensure you always comply (we can help with this)
- Have a good read of your policy documentation (make sure you read the policy booklet too)
Need help? Give Malago a call 01934 788807