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A recent decision of the British Columbia Court of Appeal addresses the interesting issue of warranties in a marine insurance policy. The case is Elkhorn Developments Ltd. v. Sovereign General Insurance Co. Elkhorn’s barge sank in Brooks Bay and was a total constructive loss. Five days earlier it had been towed to Brooks Bay from Finn Bay, approximately 100 miles away. Insurance coverage was denied on the ground that Elkhorn failed to comply with the warranty to obtain prior approval from the insurer to move the barge.