Publication of updated Excess Health Care Providers' Liability Wording

The LMA's Medical Malpractice Committee has produced an updated Excess Health Care Providers' Liability Policy wording, for use on US risks. The committee has produced an 'A' (LMA3172) version and a 'B' version (LMA3173) - the difference being alternative Claims Co-operation language.

A Batch Endorsement (LMA5619) (with a General Liability Occurrence Endorsement to follow) has been released for use with this wording.

This wording is an update to the previously used XHCP 91 wording. The update is intended to enhance clarity, make the wording easier to read and ensure key exposures are appropriately addressed.

Committee members from Arch, Beazley, Brit, Chaucer, Dale, with LMA support, met regularly and engaged with wordings specialists and external counsel for assistance with specific clauses and issues, to ensure a variety of viewpoints were considered.

The following list details the main changes to the wording:

Claims Made as a default on both liability sections with a soon to be available Occurrence Endorsement for the General Liability section, if negotiated.
Embedded current market exclusions and conditions with corresponding definitions, where needed.
A new Policy Disputes section incorporating both Arbitration and Service of Suit.
No Cyber clarification language within base document. Cyber clarifications to be added by endorsement, as negotiated.

The working group have also produced an itemised full change log (New XHCP23 Change Log).

All LMA model clauses are purely illustrative and are published and distributed for the guidance of Lloyd’s managing agents, brokers and other market participants. All contracting parties are free to agree to different conditions/amend the model clauses as they see fit; the LMA does not protect its intellectual property rights over model clauses. It is for underwriters to decide whether or not any contractual language is acceptable on any given risk. The clauses are available on the Lloyd’s Wordings Repository (LWR).

Katie Clark
Executive, Technical Underwriting