PFAS Casualty Reinsurance Exclusions Published

The International Casualty Reinsurance and North American Casualty Reinsurance panels have jointly produced two model clauses to exclude liability for Perfluorinated Compounds, Perfluoroalkyl and Polyfluoroalkyl Substances (PFAS).

LMA5625 contains no reverse burden of proof provision. LMA5626 does include such provision for use where the original policy has no PFAS exclusion.

NB These clauses use the same definition of PFAS used in the model direct & facultative clauses (LMA5595/5596) published previously by the LMA.

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.

LMA5625 PFAS Exclusions NO. 3

LMA5626 PFAS Exclusions NO. 4

Steven Dennis
Senior Executive, Technical Underwriting
steven.dennis@lmalloyds.com