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We have a claim with significant damage, but not yet looking like a total loss, on a six-month-old digger. While the repairs are being undertaken by the official manufacturer, they are saying that the repairs will void any ongoing manufacturer's warranty. If the repairs are completed, the loss of the manufacturer's warranty is a big concern to the client. Does this have to be considered by the insurer when considering the claim costs?

Reply: Crossley Gates

The loss of the warranty will be a consequential loss to the insured damage to the digger. Therefore, it is unlikely to be covered under the policy as consequential losses are usually excluded. 

If the repairs are being done by the manufacturer, it seems odd that the manufacturer won't stand by its original warranty (and by implication, stand by its own repairs). I suggest your client applies commercial pressure.

June 2020

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