Property Insurance

Sidebar_image1 Sidebar_image1 Sidebar_image1
1 3 2 4 5 6
Sidebar_image1 Sidebar_image1 Sidebar_image1

Warranty ‘s meaning in Office Insurance Policy implies an agreement that is there at the time of the policy inception and will be there throughout the policy tenure. There will be no variation in the terms and conditions of the policy without the written consent of the insurer. For the purpose of the warranty, the insurer has an obligation to do the following –

  • Proper safety checks
  • Following preventive maintenance measures
  • Rectification of loss or damage due to normal operation or ageing

Understanding the warranty meaning is crucial when purchasing products or services, as it outlines the terms and conditions, coverage, and remedies provided by the manufacturer or seller, ensuring customer satisfaction and peace of mind.

Overall, the warranty in Office Insurance Policy is:

  • A legal undertaking is between the policyholder and the insurance company
  • A matter of understanding between the policyholder and the insurance company

A warranty implies that the office and equipment insure lawfully. Any content, object, or person attached to the office insurance undertaking should not be illegal.

There are various types of warranty in Office Insurance Policy like –

  • A bookkeeping warranty

means that the policyholder should maintain a complete set of books, accounts, and an accurate daily record of all the inventories. Along with it, it is necessary to have a proper record of all the stocks in hand and inventories along with the stock of books that has been removed to another secured building. Further, this warranty applies separately to each and every location from which the policyholder conducts business. Any transfer or movement of stocks, inventories, etc.; shall be between the meaning of this warranty


  • Machinery Breakdown Warranty

This means that the plant may turn over periodically only for maintenance purposes. In case the plant has to be used otherwise, then it is necessary for the policyholder to inform the insurance company and pay an additional premium as may be required. In case the insurer fails to inform, the insurer’s liability shall cease.

A warranty is important as it is a legal statement that acts as a promise of faith. In case did not follow any warranty statement of fact, the insurance policy becomes null and void. In any situation, the policyholder can’t break the warranty or legal promise. It is important to note, even if the breach of warranty is not applicable to the risk it can still apply.

Read More: What Is Tenants Legal Liability Under Office Insurance?


When considering an Office Insurance Policy, it is vital to comprehend the warranty meaning, including repair or replace options, express and implied warranties, written guarantees, and extended warranties. The Uniform Commercial Code governs warranty terms, including the warranty of merchantability. Understanding these aspects ensures coverage for defective parts, protecting your investment. Make an informed decision when purchasing the product, keeping in mind the significance of a comprehensive warranty in safeguarding your office assets.

The significance of an Office Insurance Policy lies in its protection against unforeseen events, providing coverage for damages and losses. It offers both express and implied warranties, ensuring peace of mind when you purchase the product and safeguarding your valuable office assets.


L.J Engineering is a reputed name in the market. The company has purchased an office insurance policy for its Pune office. The company has an office insurance policy to get financial coverage against various types of risks and losses, like fire, theft, burglary, earthquake, flood, etc.

At the time of buying the office insurance policy, L.J Engineering clearly stated that it would install fire extinguishers at different locations and also do their proper maintenance. However, last year, a fire erupted at its office due to short-circuit. There was a loss of Rs 20 lakh, and as the company had an office insurance policy, it approached the insurer for the claim settlement.

In this case, the insurer appointed a surveyor to compute the extent of losses or damages. Here, the surveyor found that though the company installed fire extinguishers at different locations of the office, they were not properly maintained, and even employees were not given proper training on their usage.

Check More: Which Expenses Are Covered by The Fire Policy?

In this case, the official insurance company did not settle the claim of the engineering company. Due to the engineering company’s negligence in disregarding safety measures despite knowing the fire risk, a loss occurred. It was a clear breach of warranty.

As their office was more vulnerable to perils, like fire, and theft, the engineering company clearly stated in the agreement that it will take all necessary precautions. They also also guide its employees on the safe usage of items. However, it did not take steps toward the safety mechanisms, and due to this fire erupted. Therefore, considered it a breach of warranty. Due to this breach, the insurer was right in refusing the claim.