Warranty
Category: Policy terms · Reviewed by the Apex broking team · Last reviewed 2026-08-22 · ~5 min read
Category: Policy terms
Also known as: promissory warranty, express warranty, implied warranty, warranty clause
Related concepts: Marine Insurance Act 1906, section 33, Insurance Act 2015, section 10
Definition
The statutory definition is in section 33 of the Marine Insurance Act 1906. A warranty means a promissory warranty, that is to say a warranty by which the assured undertakes that some particular thing shall or shall not be done, or that some condition shall be fulfilled, or whereby he affirms or negatives the existence of a particular state of facts. A warranty may be express or implied. It is a condition which must be exactly complied with, whether it be material to the risk or not.
That last sentence is what makes a warranty different from an ordinary policy condition. Materiality is irrelevant to whether the term has been breached. Our separate entry on section 33 sets out the provision and its history in full.
What changed in 2015
Section 33(3) of the 1906 Act used to continue with a second sentence providing that if a warranty was not complied with, the insurer was discharged from liability from the date of breach. That sentence was omitted by section 10(7)(a) of the Insurance Act 2015, and section 34 of the 1906 Act, on when breach of warranty is excused, was repealed at the same time.
Section 10 of the 2015 Act replaced the automatic discharge rule with a suspensory one. The abolition of the discharge rule, the suspension of liability during the period of breach, the exceptions where the warranty ceases to be applicable, becomes unlawful to comply with, or is waived, and the mechanics of remedying a breach are all set out in our entry on section 10. The change took effect on 12 August 2016.
Warranties in commercial wordings
Warranties are common in property and package covers, particularly around protections. Typical examples are a warranty that an intruder alarm is set whenever the premises are unattended, that a sprinkler system is maintained and in full working order, that specified locks are fitted and used, that hot work is carried out under a permit system, or that waste is removed from the premises at the end of each working day. Marine and construction wordings use them heavily too.
The label is not decisive. A term described as a warranty may on analysis be a condition precedent, a suspensive condition or an ordinary condition, and a term not so described may still operate as a warranty. What matters is the substance: does the term require exact compliance, and what does the wording say happens if it is not complied with?
Related but different terms
A representation is a statement of fact made when the risk is presented. It is not a promise about the future and, in non-consumer insurance, section 9 of the Insurance Act 2015 prevents it from being converted into a warranty by a basis of contract clause. A condition precedent to liability makes the insurer’s liability for a particular claim conditional on compliance, most often with claims notification requirements. A risk-mitigation term is one which, if complied with, would tend to reduce the risk of loss of a particular kind, at a particular location or at a particular time; section 11 of the Insurance Act 2015 prevents an insurer from relying on breach of such a term where the insured can show the breach could not have increased the risk of the loss which actually occurred.
Practical points at placement
Three questions are worth asking about every warranty in a wording. Can the business actually comply with it, every day, without exception? Is the obligation within the insured’s control, or does it depend on a third party such as a landlord or a maintenance contractor? And if it is breached, is the breach capable of being remedied, so that cover revives under section 10?
Where a warranty is unworkable, the answer is usually to negotiate it into a condition or a risk-mitigation term at placement rather than to hope the point never arises. Where it is workable, the answer is to make sure the people who have to comply with it know it exists — a warranty in a policy schedule that nobody on site has read is a live exposure.
Frequently asked questions
Does breach of warranty still void the policy?
No. Since 12 August 2016 section 10 of the Insurance Act 2015 has replaced automatic discharge with suspension. The insurer has no liability for loss occurring while the warranty is breached, but liability resumes once the breach is remedied, and losses before the breach are unaffected.
Does a warranty have to be material to the risk?
No. Section 33(3) of the Marine Insurance Act 1906 provides that a warranty must be exactly complied with whether it is material to the risk or not. What has changed is the consequence of breach, not the standard of compliance.
What is the difference between a warranty and a condition precedent?
A warranty is a continuing promise about a state of affairs or conduct, breach of which suspends cover. A condition precedent to liability makes the insurer's liability for a particular claim conditional on compliance, most commonly with the claims notification procedure.
Related entries
- Marine Insurance Act 1906, section 33
- Insurance Act 2015, section 10
- Warranty to suspensive condition
- Conditions precedent
- Section 11 of the Insurance Act 2015
- Commercial insurance UK
This entry is part of the Apex Insurance Wiki. It states the position as at August 2026. Last reviewed 2026-08-22. Next review: 2027-02-22. It is general insurance information, not legal advice, and it is not regulated advice on a specific policy.
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This page is general information, not advice on a specific policy.