Lloyd’s Market Association Bulletin

The LMA’s International Liability Committee has produced updated versions of the General Liability Insurance ‘Occurrence’ and ‘Claims Made’ policy wordings, published as LMA3150B and LMA3151B respectively. LMA3150A and LMA3151A have been archived on the Lloyd’s Wordings Repository but remain accessible.

With the LMA’s support, committee members 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.

• New bodily injury definitions included – see the separate guidance document below.
• Extended Reporting Period within the ‘Claims Made’ form broadened to include the pollution liability section of the policy where covered.
• The requirement for all pollution to occur within the policy period has been removed from both forms. All pollution relating to an occurrence/event must occur within a 30-day period for coverage to apply.
• The following additional exclusions have been included:
  • Communicable Disease
  • Perfluorinated Compounds, Perfluoroalkyl and Polyfluoroalkyl Substances
  • Climate Change
  • Regulatory Costs or Criminal Investigation Costs
  • Related Companies
  • Related or Associated Parties and/or Joint Ventures
• Dispute Resolution condition broadened to include Arbitration and Service of Suit.

The working group has also produced an itemised full change log and a Bodily Injury definition Guidance Note.

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
steven.dennis@lmalloyds.com