US excess casualty cyber clauses

Following Lloyd’s Bulletin Y5258 that confirmed a number of Lloyd’s requirements for clarity regarding US general liability policies in respect of cyber clauses, the LMA has conducted a review of sample clauses that have been submitted for consideration.

The LMA is not providing advice as to whether any of these clauses will be effective as an exclusion or the extent to which it will provide coverage or the extent to which it will apply to any particular set of facts. This will amongst other things depend upon the applicable law and jurisdiction and also the dispute resolution mechanism selected.  It is for underwriters to decide whether or not any contractual language is acceptable on any given risk.  If in doubt, Underwriters should take their own legal advice to satisfy themselves that the clause is appropriate.

Following this review, the LMA can confirm which carriers’ clauses are compliant with the Lloyd’s requirements set out in the bulletin. Underwriters should therefore be able to use or follow knowing that the cyber language is compliant with the Lloyd’s requirements.