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📜 '''Condition precedent''' is a contractual requirement in an [[Definition:Insurance policy | insurance policy]] that the [[Definition:Policyholder | policyholder]] must fulfill before the [[Definition:Insurance carrier | insurer's]] obligation to pay a [[Definition:Insurance claim | claim]] or provide coverage is triggered. Unlike a general policy term that shapes the ongoing relationship, a condition precedent establishes a gateway: if the insured fails to satisfy it, the carrier may have grounds to deny the claim entirely, regardless of whether a covered loss actually occurred. Common examples in insurance include timely notice of a loss, cooperation with the insurer's investigation, and submission of a [[Definition:Proof of loss | proof of loss]] within a specified period.

⚙️ When a loss event occurs, the policy's conditions section dictates the procedural steps the insured must follow. In [[Definition:Claims-made policy | claims-made]] liability coverage, for instance, reporting the claim within the policy period — or an applicable [[Definition:Extended reporting period | extended reporting period]] — often operates as a strict condition precedent to coverage. Failure to comply can bar recovery even when the underlying [[Definition:Liability | liability]] is clearly within the policy's insuring agreement. The consequences of non-compliance vary by jurisdiction: some courts apply a strict "no compliance, no coverage" rule, while others require the insurer to demonstrate actual [[Definition:Prejudice | prejudice]] from the breach before it can disclaim. In [[Definition:Reinsurance | reinsurance]] contracts, conditions precedent — such as prompt claims notification or adherence to [[Definition:Claims cooperation clause | claims cooperation clauses]] — carry particular weight because the reinsurer's ability to manage its exposure depends on receiving timely, accurate information from the [[Definition:Ceding company | ceding company]].

🔍 Understanding which policy provisions qualify as conditions precedent versus mere covenants or [[Definition:Warranty | warranties]] is essential for anyone involved in [[Definition:Claims handling | claims handling]], [[Definition:Coverage analysis | coverage analysis]], or [[Definition:Policy drafting | policy drafting]]. Mislabeling a provision can have serious consequences — if a court interprets a clause as a condition precedent when the drafter intended it as a lesser obligation, the insurer gains a stronger declination defense than the premium pricing may have contemplated. Conversely, if an intended condition precedent is poorly worded, courts may refuse to enforce it as such, leaving the carrier exposed. For [[Definition:Underwriting | underwriters]] and brokers negotiating manuscript policies, precise drafting of these provisions is one of the most consequential aspects of policy construction.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Conditions (policy)]]
* [[Definition:Proof of loss]]
* [[Definition:Notice of loss]]
* [[Definition:Warranty]]
* [[Definition:Claims-made policy]]
* [[Definition:Prejudice]]
{{Div col end}}

Definition:Condition precedent - Revision history

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