“My Insurer has refused to pay out on my fire insurance claim!”

For the majority of businesses, the above quotation will never happen.   But for some it may be the case!

The reason some insurance claims are refused are due to a breach in policy Warranties.

A  “Warranty” is  a special form of policy condition used by insurers to police activities of policyholders.  Any infringement of a warranty  – even an innocent infringement – gives the insurer the right to refuse claims.

For example Woodworkers naturally manufacturer products from wood.  Therefore fire insurance cover under their commmercial combined policy would normally be subject to a “Waste Warranty”. The wordings of theses waste warranties vary bewteen insurers, but typically we have come across policies who are required to clear sawdust and shavings from machines  and the floors daily and remove collective waste from the premises daily.

Some Woodworking businesses may be unaware of this warranty.  Some will be unable to comply.  Neither would be insured in the event of a fire. Also some Woodworkers retain offcuts as winter fuel and these too could be regarded as failure to clear waste from their premises.

If this is a problem for you, or you would like to discuss this in greater detail,  please contact our Woodworking Insurance specialist Richard Gibson on 07510 695335 or email him at  richard.gibson@abourne.com

We are able to offer insurance policies that provide less onerous waste requirements.

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