What remedy is available to an insurer for a minor breach of a collateral condition by a commercial policyholder?

In the context of insurance law and specifically regarding minor breaches of collateral conditions by a commercial policyholder, a claim for damages is the appropriate remedy. A minor breach of a collateral condition indicates that while the policyholder has not fully complied with a condition of the contract, the breach is not serious enough to warrant more severe consequences, such as termination of the policy.

When dealing with minor breaches, insurers typically have the option to claim damages, which allows them to seek compensation for any losses incurred due to the breach. This approach reflects the principle of proportionality, recognizing that not all breaches are equal and that the insurer should be able to address the financial impact of the breach without resorting to drastic measures.

In contrast, terminating the policy would be disproportionate for a minor breach, as it would preclude coverage for the policyholder despite the relatively insignificant nature of the violation. Adjusting the premium is also unlikely to be applicable in this scenario, as it generally pertains to changes in risk rather than responses to breaches. Issuing a warning might be a valid action, but it does not constitute a remedy that compensates for any losses incurred.

Thus, claiming damages aligns with the established legal framework for dealing with minor breaches in insurance contracts, making it the correct