11.1 The classification of conditions

Most of the conditions affecting cover in liability policies can be classified as being one of two kinds: procedural conditions (below 11.4) or warranties. Warranties, like exclusions (above Chapter 10), limit the scope of the cover, the scope of the risk assumed by the insurer. However, exclusions are limited in time or in respect of a certain kind of liability, and for other times or other kinds of liability the policy remains in force. For example, if a liability claim is brought against the insured in the USA, cover may well be excluded; but if a similar claim is brought later against the insured in the UK, the policy remains in force in the UK and may well apply. In contrast, at common law a warranty once broken terminated cover automatically and forever from the time of breach,1 until the Insurance Act 2015, section 10, in force from August 2016, modified the strict common law rule.