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What is breach of warranty?

April 26, 2017breach warranty

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What is breach of warranty?

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A breach of warranty is the breaching or a warranty contract, or in the insurance world meaning an insurance contract. This is purely a legal term that is applied in a slightly different fashion in the aviation insurance world. A breach of warranty in the aviation insurance world means that you have performed some act that actually voids the insurance contract. Despite the fact that you have voided the contract, if a bank holds a lien on your aircraft, and if during the act of voiding the contract the aircraft is damaged or is a total loss the insurance company will pay off the lien amount to the bank. That is a complex way of saying a breach of warranty is solely for the benefit and protection of a bank that has a lien on your aircraft.