Insurance: Avoidance Of Variations To Insurance Contracts

In a recent case, the Court has considered the impact of misrepresentations and non-disclosures prior to conclusion of a variation to an existing insurance contract, as well as the interpretation of burglary and protection maintenance warranties.

The Insured had a "Multiline" insurance policy with the Insurers, which covered risks such as property damage, business interruption, employer's liability and public liability. It also covered losses resulting from theft. The Insured claimed under this policy following the theft of cigarettes and tobacco which were stored in a caged area of a mezzanine floor in its warehouse. Amongst other things, Insurers refused cover for the claim on the following grounds: