Updated Terrorism Liability Insurance Policy published

The LMA's Terrorism and Political Violence Panel has produced an updated version of the Terrorism Liability Insurance Policy published as LMA3167A.

Committee members with LMA support, engaged with wordings specialists and external counsel for assistance with specific clauses and issues, to ensure a variety of viewpoints were considered.

The main changes to the wording are listed below. Underwriters should familiarise themselves with the updated policy to understand the full extent of the changes.

Default Choice of Law (England and Wales) and Jurisdiction (the High Court of Justice, England and Wales) now stated in the Schedule.
Reference to ‘DEDUCTIBLE’ replaced with ‘EXCESS’ to reflect the operation of the policy.
‘BODILY INJURY’, ‘CLAIM’ and ‘POLICY’ definitions amended.
‘CYBER INCIDENT’ definition incorporated within the ‘CYBER LOSS’ definition. Reference to criminal acts also included within the ‘CYBER LOSS’ definition.
‘RETROACTIVE DATE’ definition deleted and new ‘ENDORSEMENT’ and ‘PROFESSIONAL SERVICES’ definitions included.
Preamble to the Claims/General Conditions amended with the remedy for breach of a condition now stated within the relevant condition.
Default arbitration rules changed to ARIAS (UK).
Previous ‘Invalidity or Unenforceability’ condition renamed as ‘Conflict of Statutes/Laws and Unenforceability’. The condition also states that in the event any provision within the policy conflicts with applicable law/statutes, such provision is amended or disapplied to comply with the minimum requirements of such laws/statutes.
‘Other Insurance’ condition altered to include the sentence ‘Nothing contained in this General Condition 10 shall serve to waive or alter the INSURED’S liability to pay the EXCESS applicable in respect of any CLAIM’.
Sanctions clause language now consistent with LMA3200.

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).

LMA3167A Terrorism Liability Insurance Policy

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