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Policy improvement clause, in the boat insurance glossary

Boat insurance term, area: Contract

Policy wordings are revised from time to time. An existing policyholder normally stays on the wording in force when the policy was taken out and gains from later improvements only once the contract is moved to the new edition. An improvement clause changes that: where the insurer betters the terms for new customers, the better terms apply to existing policies automatically. Such clauses are usually limited to changes that are wholly in the policyholder's favour, carry no extra premium and concern the same product. Example: a new edition adds inspection costs after a grounding.

What to check: Does your policy say that later improvements to the wording apply to you automatically, and from when? Is the clause limited to changes without extra premium and to the same level of protection you bought?

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