Failure to comply with the terms or conditions incorporated in an insurance policy, frequently resulting in a restriction of coverage or a voiding of a policy itself.
Insurance Encyclopedia
Breach of contract (Legal Terminology)
Failure of one of the parties of a contract to meet contractual obligations.
Breach of Contract Cover
A form of credit insurance effected by a company to protect another against loss through failure of the company to complete contractual obligations of a financial nature.
Breach of Good Faith
A non-disclosure of misrepresentation of a material circumstance, by an assured, reassured or broker, during negotiations leading to the conclusion of the contract, whereby the underwriter is misled in his appreciation of the risk.
Breach of statutory duty
A tort where the defendant has committed a breach of duty imposed by statute or regulation and Parliament intended to confer a statutory remedy on the claimant. HSWA 1974, s.47, provides that breaches of the Act do not create civil remedies but a breach of regulations, (e.g. PUWER 1998) is actionable unless the regulation indicates otherwise. Where the statute is silent on civil remedies, the courts have to enquire into the intention of Parliament.
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In the case of many statutes a breach of a duty imposed by the statute gives a right of action in tort to a person injured by the breach.
Breach of Warranty
A breach of a contract condition which may include representation made by the insured that are incorporated into the contract. Under common law an Insurer need not prove either intent or materiality to deny a claim on the basis of a breach of warranty. Statutes have modified that doctrine considerably.
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See: “Warranty.”
Breach of Warranty Clause/Navigation provisions
International Hull Clause 11 indicating that the insured is held covered for breach of warranty as to cargo, trade, locality, towage, salvage services or date of sailing, provided notice is given and any additional premium paid.
Breach of Warranty Endorsement, Aviation
An endorsement to extend cover under an aircraft hull insurance to protect the interest of the mortgagee or lessor of the hull even if the insured has been guilty of an act or omission that would invalidate his own cover.
Breach of Warranty for Marine Hull
Business demands may compel a ship owner to breach certain warranties in the policy. This clause provides a safeguard to the ship owner in such circumstances, provided due notice is given to the insurers and an appropriate premium is paid. The clause also gives underwriters the right of amending the cover should the breach in their opinion warrant such amendment. The breaches which are “held covered” are warranty as to cargo, trade, locality, towage, salvage services or date of sailing only.
Breach of warranty insurance
Insurance covering banks for the outstanding amount of loans that funded the purchase of aircraft. If the hull insurance is invalidated by the airline’s breach of warranty, the bank may suffer loss notwithstanding a lien on the aircraft. Cover is separate or by endorsement of the hull policy.