Insurance company “Get out” clauses

Insurance companies have a responsibility to their owners to manage the risks they underwrite. To help reduce these risks they expect you to manage the risks you expose them to. They ask that you manage the risks you expect them to underwrite. If you don’t, they would be within their rights to refuse to accept a claim.

Examples

More than

The Insured at his own expense shall (A) take all reasonable precautions to prevent or diminish loss destruction or damage or any occurrence or cease any activity which may give rise to liability under this Policy and to maintain all buildings furnishings ways works machinery plant caravans and vehicles in sound condition

Royal Sun Alliance

2. The Insured at his own expense shall

(A) take reasonable precautions to prevent any circumstances or to cease any activity which may give rise to liability under this Policy and to maintain all buildings furnishings ways works machinery plant and vehicles in a sound condition

(B) as soon as possible after discovery cause any defect or damage to be made good or remedied and in the meantime shall cause such additional precautions to be taken as the circumstances may require

Axa

Reasonable Precautions The Insured shall a) take all reasonable precautions to prevent occurrences which may give rise to loss destruction or damage b) take all reasonable steps to comply with statutory requirements obligations and regulations imposed by any authority c) take immediate steps to make good or remedy any defect or danger which becomes apparent or take such additional precautions

Hiscox

You have an obligation to take reasonable steps to mitigate any loss.

Norwich Union

You will (a) maintain The Premises, machinery, plant and equipment in a satisfactory state of repair

(b) take all reasonable precautions to prevent (i) loss, destruction or damage to

Property Insured (ii) accident or injury to any person or loss, destruction or damage to their property (c) comply with all legal requirements and safety regulations and conduct The Business in a lawful manner

As you can see you are expected to keep your equipment in good condition. The bast way to make sure that you do is by being able to prove that you take a Proactive approach to safety. i.e. by keeping your “PAT” test records current.