Lloyd's Market Association Bulletin
LMA22-022-JHF | 15 June 2022
Serial Loss and Serial Defect Clauses
The Renewable Energy Sub-Committee (a sub-group of the Joint Power Generation) has produced a Serial Loss clause and a Serial Defect clause. These seek to limit exposure arising from multiple physical damage losses due to the same, or similar, cause.
Please find below:
Use of wordings and clauses
From time to time, the LMA publishes wordings and clauses as models which can be accessed on the Lloyd's Wordings Repository and/or the LMA website. These models are provided as a service to members and clients of the LMA, are purely illustrative and not mandatory (unless otherwise specifically mandated by Lloyd’s, law or regulation). Members and clients are free to adopt or amend different wordings and clauses in their sole discretion. The LMA takes no responsibility or liability for the use of these models and it is the responsibility of the contracting parties to ensure and, where appropriate, take professional advice on whether or not model wordings or clauses comply with applicable laws and regulations, or are suitable for their intended use. The LMA does not publish written guidelines with regard to application or intent of any specific contractual terms and the LMA therefore cannot release any clause drafting history. The LMA (including all panels and working groups, which may include Joint Committees in conjunction with the International Underwriting Association (IUA)) in drafting such wordings and clauses operates under strict terms of reference to ensure, amongst other things, compliance with Competition Law.
Josh Hutson Flynn
Executive, Technical Underwriting