Clauses Related to Corona Virus Covid-19 ~ Insurance Academy

Responding to the Covid-19 outbreak, the insurance world responded with several policies. Recently, Lloyd’s Market Association has issued several clauses. The following are some of these clauses:

LMA 5391 Corona Virus Exclusions

Your Insurance Policy does not / This Insurance does not {delete as applicable} cover any claim in any way caused by or resulting from:
a) Coronavirus disease (COVID-19);
b) Severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2);
c) any mutation or variation of SARS-CoV-2;
d) any fear or threat of a), b) or c) above.

LMA5391
04 March 2020

LMA 5392 Limited Automatic Extension Prevention of Access to Lloyds of London

In the event that, seven (7) or fewer calendar days before expiration of this contract of (re)insurance, all Lloyd’s Syndicates are prevented from entering Lloyd’s of London, One Lime Street, London, EC3M 7DQ:

1.1. by the Corporation of Lloyd’s; or

1.2. following the imposition of quarantine or restriction in movement of people by any national or international body or agency;

for more than one (1) business day during the seven (7) days before expiration of the contract of (re)insurance, this contract of (re)insurance shall, in consideration of a pro-rata additional premium, be automatically extended at the existing terms and conditions for fourteen (14) days from the expiration of the contract of (re)insurance.

However, the automatic extension is provided under paragraph 1:
2.1. shall only apply if the (re)insured, their broker or (re)insurers, despite using best endeavors, are unable to implement Lloyd’s Emergency Trading Protocol; and

2.2. shall not increase or reinstate any applicable limit(s) of liability; and

2.3. shall only apply once, unless agreed otherwise in writing by (re)insurers; and

2.4. can be voided by mutual agreement between the (re)insured and (re)insurers.

LMA5392
12 March 2020

LMA 5393 Communicable Disease Endorsement

1. This policy, subject to all applicable terms, conditions and exclusions, covers losses attributable to direct physical loss or physical damage occurring during the period of insurance. Consequently and notwithstanding any other provision of this policy to the Contrary, this policy does not insure any loss, damage, claim, cost, expense or other sum, directly or indirectly arising out of, attributable to, or occurring concurrently or in any sequence with a Communicable Disease or the fear or threat (whether actual or perceived) of a Communicable Disease.

2. For the purposes of this endorsement, loss, damage, claim, cost, expense or other sum, includes, but is not limited to, any cost to clean-up, detoxify, remove, monitor or test:

2.1. for a Communicable Disease, or

2.2. any property insured hereunder that is affected by such Communicable Disease.

3. As used herein, a Communicable Disease means any disease which can be transmitted by means of any substance or agent from any organism to another organism where:

3.1. the substance or agent includes, but is not limited to, a virus, bacterium, parasite or other organism or any variation thereof, whether deemed living or not, and

3.2. the method of transmission, whether direct or indirect, includes but is not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid or gas or between organisms, and

3.3. the disease, substance or agent can cause or threaten damage to human health or human welfare or can cause or threaten damage to, deterioration of, loss of value of, marketability of or loss of use of property insured hereunder.

4. This endorsement applies to all coverage extensions, additional coverages, exceptions to any exclusion and other coverage grant(s).

All other terms, conditions and exclusions of the policy remain the same.

LMA5393
25 March 2020

LMA 5394 Communicable Disease Exclusion Property Treaty Insurance

Notwithstanding any provision to the Contrary within this reinsurance agreement, this reinsurance agreement excludes any loss, damage, liability, claim, cost or expense of whatsoever nature, directly or indirectly caused by, contributed to by, resulting from, arising out of, or in connection with a Communicable Disease or the fear or threat (whether actual or perceived) of a Communicable Disease regardless of any other cause or event contributing concurrently or in any other sequence thereto.

As used herein, a Communicable Disease means any disease which can be transmitted by means of any substance or agent from any organism to another organism where:
2.1. the substance or agent includes, but is not limited to, a virus, bacterium, parasite or other organism or any variation thereof, whether deemed living or not, and

2.2. the method of transmission, whether direct or indirect, includes but is not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid or gas or between organisms, and

2.3. the disease, substance or agent can cause or threaten damage to human health or human welfare or can cause or threaten damage to, deterioration of, loss of value of, marketability of or loss of use of property.

LMA5394
27 March 2020

LMA 5395 CORONAVIRUS EXCLUSION (for use on marine and energy liability policies)

This clause shall be paramount and shall override anything contained in this insurance inconsistent therewith.

This insurance excludes coverage for:
1) any loss, damage, liability, cost, or expense directly arising from the transmission or alleged transmission of:
a) Coronavirus disease (COVID-19);
b) Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2); or
c) any mutation or variation of SARS-CoV-2;
or from any fear or threat of a), b) or c) above;
2) any liability, cost or expense to identify, clean up, detoxify, remove, monitor, or test for a), b) or c) above;
3) any liability for or loss, cost or expense arising out of any loss of revenue, loss of hire, business interruption, loss of market, delay or any indirect financial loss, howsoever described, as a result of any of a), b ) or c) above or the fear or the threat thereof.

All other terms, conditions and limitations of the insurance remain the same.

LMA 5396 – COMMUNICABLE DISEASE EXCLUSION (For use on liability policies)

1. Notwithstanding any provision to the Contrary within this policy, this policy does not cover all actual or alleged loss, liability, damage, compensation, injury, sickness, disease, death, medical payment, defense cost, cost, expense or any other amount , directly or indirectly and regardless of any other cause contributing concurrently or in any sequence, originating from, caused by, arising out of, contributed to by, resulting from, or otherwise in connection with a Communicable Disease or the fear or threat (whether actual or perceived) of a Communicable Disease.
2. For the purposes of this endorsement, loss, liability, damage, compensation, injury, sickness, disease, death, medical payment, defense cost, cost, expense or any other amount, includes, butis not limited to, any cost to clean -up, detoxify, remove, monitor or test for a Communicable Disease.
3. As used herein, a Communicable Disease means any disease which can be transmitted by means of any substance or agent from any organism to another organism where:
3.1. the substance or agent includes, but is not limited to, a virus, bacterium, parasite or other organism or any variation thereof, whether deemed living or not, and
3.2. the method of transmission, whether direct or indirect, includes but is not limited to, airborne transmission, bodily fluid transmission, transmission from or to any surface or object, solid, liquid or gas or between organisms, and
3.3. the disease, substance or agent can cause or threaten bodily injury, illness, emotional distress, damage to human health, human welfare or property damage.

LMA5396
17 April 2020