What is a warranty in marine insurance?

In marine insurance, a warranty is fundamentally a stipulation regarding a fact or condition that is relevant to the risk being insured. It represents a promise that certain conditions will be met or that specific facts are true, which impacts the insurer's decision to underwrite the policy. If a warranty is breached, it can void the insurance coverage, as the insurer relies on these statements or conditions to assess the risk involved.

This concept differs significantly from other terms in the context of insurance. A binding agreement to pay all claims does not accurately capture the specific nature of a warranty, which is more focused on the assurance regarding the risk conditions rather than merely outcomes related to claims. Similarly, a guarantee against all losses is broader and implies unrestricted coverage, which does not align with the precise nature of warranties being limited to specific conditions or facts. Lastly, a conditional agreement to provide coverage might suggest flexibility in terms, but a warranty is more rigid, requiring adherence to stipulated facts rather than just conditions that could be negotiated. Understanding warranties in this way emphasizes their critical role in determining and maintaining the validity of a marine insurance policy.