London, 30 June 2026: The Lloyd’s Market Association (LMA) today announces the publication of a new model wording designed for small and medium-sized enterprises (SMEs) requiring property and business interruption insurance.
Developed in response to market demand and in line with the LMA’s continued commitment to supporting best practice, the new wording builds on the success of the LMA’s Consumer Household Insurance Policy. Following its publication, LMA members requested a comparable, high-quality wording tailored specifically for SME risks.
The policy provides comprehensive cover for damage to insured property and associated business interruption losses. It also includes a range of optional extensions, such as cover for business interruption resulting from property damage at the premises of a direct customer or supplier.
A key focus of the wording is clarity and accessibility. It has been drafted using consumer-friendly language, with an emphasis on readability and alignment with the FCA’s Consumer Duty requirements, supporting improved customer understanding and outcomes.
Development of the wording was led by the LMA’s UK/International Commercial Property & Household Business Panel.
David Powell, Head of Technical Underwriting at the LMA, commented: “This new model wording reflects our ongoing commitment to supporting the market with clear, practical and compliant documentation. By focusing on plain, consumer-friendly language and ensuring alignment with regulatory expectations, we are helping our members deliver better outcomes for SME clients while maintaining the technical robustness the market expects.”
The new wording is available on the Lloyd’s Wordings Repository.
ENDS
Notes to Editors
All LMA model clauses and wordings 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 or wordings as they see fit; the LMA does not protect its intellectual property rights over model clauses or wordings. It is for underwriters to decide whether or not any contractual language is acceptable on any given risk.
Media relations contacts
LMA:
Carole Porter, Head of Marketing and Communications | +44 20 3307 3947 | Email: carole.porter@lmalloyds.com
Omnia Partners:
Victoria Sisson, Director | +44 794 129 4872 | Email: victoria.sisson@weareomniapartners.com
About the Lloyd’s Market Association
The Lloyd’s Market Association (LMA) exists at the very heart of Lloyd’s, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. 59 Lloyd’s managing agents and members’ agents are members of the LMA.
We represent our members’ interests to organisations including governments, regulators, and the market’s central supporting body, the Corporation of Lloyd’s. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies. We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd’s and the other market associations to influence initiatives and outcomes. We operate the market’s most comprehensive technical education service, the LMA Academy. For more information visit: www.lmalloyds.com.