What is a potential consequence of breaching a warranty in a marine insurance contract?

In a marine insurance contract, breaching a warranty can lead to the policy becoming void. Warranties in such contracts are promises that certain conditions regarding the insured object (such as a yacht) must be met and maintained throughout the policy term. When a warranty is breached, it signals that the conditions agreed upon have not been fulfilled, which can deprive the insurer of their right to provide coverage based on the original terms.

As a result, if a warranty is not honored, the insurer typically has the right to treat the policy as void from the point of breach, meaning that they are released from any obligation to pay claims related to that policy. This principle is grounded in the idea that warranties are fundamentally significant to the risk assessment and underwriting process of marine insurance, thus, their breach can fundamentally alter the nature of the contract.

The other options do not accurately reflect the consequences of breaching a warranty. A violation does not keep the insurance valid, nor does it prevent the insurer from canceling the policy. Furthermore, an inspection of the yacht is not a requisite action under the terms of a breached warranty in this context.