Following feedback from underwriting practitioners, the LMA’s Onshore Energy Committee has revised the model Greenhouse Gas Emissions Reduction Endorsement. Changes include:

• amending the application of the endorsement such that the repair, replacement or rebuilding of the damaged property is ‘in a manner’ that reduces greenhouse gas emissions
• amending the contribution language to clarify that the insured must contribute an amount equal to that paid by the insurers
• adding text to clarify the operation of the clause in conjunction with any deductible, excess or self-insured retention applicable to a loss.

The updated clause will be LMA5609A, the original clause will be archived.

LMA5609A

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).

Steven Dennis
Senior Executive, Technical Underwriting