Market-standard contract and coverage clauses with purpose, effect and practical guidance.
208 objects
The 72 Hours Clause defines a 72-hour window for windstorm, earthquake or similar natural perils within which multiple individual losses are treated as a single occurrence for the purposes of the deductible and the maximum indemnity.
The abstract referral clause allows a disability insurer to refer the insured to another reasonable occupation when a claim arises, even if that occupation is not actually being performed.
The access to records clause grants the reinsurer the right to inspect the cedent's books, files and claims records in order to verify cessions and claims handling.
The accumulated stocks clause ensures that an insured receives an equitable allowance for the depletion of finished goods stock used to maintain turnover after a loss, where that depletion only postpones rather than avoids a loss of turnover.
This clause defines whether actual cash value (replacement cost less wear-and-tear deduction) or replacement cost (full replacement value without deduction) governs the insurable value and the basis of indemnity.
The aggregate extension clause allows several smaller individual losses arising from the same natural event to be aggregated for the purposes of a catastrophe excess of loss cover, instead of each falling below the retention individually.
The allocation clause governs how defence costs and settlement or judgment payments are to be apportioned where a D&O claim involves both covered and uncovered elements, parties, or causes of action.
The alterations and repairs clause confirms that ongoing alteration, repair or extension works on the insured building do not automatically prejudice cover, provided certain limits (such as project value or construction method) are observed.
The alternative trading clause requires that turnover generated by the insured elsewhere during the indemnity period be brought into account as actual turnover when calculating a business interruption loss.
The annual aggregate deductible clause sets a total annual retention that the cedent must first absorb from the sum of all losses falling under the non-proportional treaty before the reinsurer becomes liable.
An AHB clause capping the insurer's total indemnity payments for all insured events in a policy year at a multiple of the agreed limit per occurrence.
This clause sets out an out-of-court procedure under which independent experts determine the basis and amount of a loss in a binding manner where insurer and policyholder cannot agree.
The approved repairer clause requires the policyholder to have own-damage claims repaired exclusively at a workshop nominated by the insurer, in return for a premium discount.
The arbitration clause requires the parties to resolve disputes under an international policy or reinsurance contract through private arbitration with an agreed seat and procedural rules, rather than before national courts.
The arbitration clause obliges the cedent and reinsurer to resolve disputes arising from the treaty through private arbitration rather than before state courts.
The asbestos and contamination exclusion comprehensively removes damage, costs and liability claims arising from the presence, release or removal of asbestos from property and liability policies.
An AHB clause under which newly arising risks of the policyholder are automatically and provisionally covered from their inception, until they are notified to the insurer and formally incorporated into the policy.
The automatic reinstatement clause ensures that the sum insured is not permanently reduced by a claim payment, but is automatically restored to its full amount from the date of loss in return for an additional premium.
This clause provides that a fixed-term insurance contract automatically renews for a further period absent termination, subject to a statutorily fixed maximum duration per renewal.
The US coinsurance clause requires the policyholder to insure the covered property up to a specified percentage (commonly 80–100%) of its actual value; if this threshold is not met, the insurer proportionally reduces the indemnity even for partial losses.
The clause excludes, and partially reinstates, cover for accidents arising from acts of war and from the use of aircraft.
A model condition that partially reinstates the AHB exclusion for damage caused by environmental impact, bringing sudden, accidental environmental damage back into cover under a standalone basic policy.
The both to blame collision clause requires the cargo insured to reimburse the carrying vessel's owner for part of the damages it pays to the cargo owner where both vessels are found jointly at fault in a collision.
The brands and labels clause allows the policyholder to remove brands, labels or other identifying marks from damaged goods before they are sold as salvage, protecting the policyholder's reputation against branded goods reaching the market at a discount.
This clause provides that a reduction or loss of benefits for breach of a contractual condition does not apply where the policyholder proves that the breach caused neither the occurrence of the insured event nor affected the extent of the insurer's liability.
This clause sets out the consequences (rescission, termination, retroactive contract adjustment or loss of cover) that follow where a policyholder has misrepresented or withheld material pre-contractual risk facts.
The broker clause designates the insurance broker instructed by the policyholder as the recipient of the insurer's communications and information, and sets out whose knowledge is attributed to the policyholder within the intermediation relationship.
The cancellation clause governs the periods, form and grounds under which an insurer or policyholder may terminate an international policy early, usually with tiered periods for ordinary and extraordinary cancellation.
AHB exclusion for damage to third-party property caused by the policyholder's own processing, repair or other business activity on that property, commonly bought back through a market endorsement.
The care, custody and control exclusion excludes from liability insurance damage to third-party property that is in the insured's custody, care, or control at the time of loss.
The cash call clause entitles the cedent to demand an immediate advance payment from the reinsurer for a large individual loss, instead of waiting for the regular periodic account.
The change in law clause governs how contract terms and continuation are affected if new legislation or regulation enacted after inception materially changes the insured risk or the basis of the contract.
The choice of law clause determines the substantive law under which an international policy is construed and coverage questions are decided, independently of the policyholder's domicile or the place of loss.
The claims control clause gives the (re)insurer or programme leader the right to control investigation, defence and settlement of a claim in whole or in part, typically drafted as a condition precedent to its own liability.
The claims cooperation clause obliges the cedent to notify the reinsurer of losses and involve it in claims handling, in some versions up to a consent requirement for settlements.
The contractual definition of the coverage trigger, determining whether the notification of the claim (claims-made) or the event causing the loss (occurrence) governs which policy period responds.
The communicable disease exclusion removes damage and business interruption connected with communicable diseases from property and business interruption cover, and was significantly developed further in response to COVID-19.
The consent to settle clause requires the insurer to obtain the insured's approval before concluding a settlement, rather than settling claims against the insured unilaterally.
The clause sets out the conditions and time limits under which a life insurer may avoid the contract because of a breach of the pre-contractual duty of disclosure.
The cyber contingent business interruption clause extends cyber business interruption cover to income loss caused by a cyber incident at a third-party service provider (e.g. a cloud provider or IT vendor).
The continuity clause credits waiting periods and prior cover already completed by insured employees when a group policy moves to a new insurer.
The continuity date clause sets the date from which an insured can demonstrate uninterrupted D&O cover and serves as the reference point for the prior-knowledge exclusion test on a change of insurer or renewal.
The contract price clause provides that damaged or destroyed goods already subject to a sale contract are indemnified on the basis of the agreed contract price rather than market value or the cost of manufacture.
An AHB exclusion for claims seeking contractual performance, supplementary performance or equivalent performance substitutes, since liability insurance covers statutory third-party claims, not the claimant's expectation interest.
The contributory causes clause reduces the accident benefit in proportion to the extent that pre-existing illness or infirmity contributed to the injury.
An AHB clause under which the insurer bears the cost of a criminal defence lawyer it has requested or approved, where criminal proceedings may give rise to a covered liability claim.
A clause in multi-party policies that applies cover separately to each insured, so that a claim brought by one co-insured against another co-insured under the same policy is covered.
The currency clause (reinsurance) specifies the currency in which premiums and losses are settled and how amounts in other currencies are converted where a treaty covers several currencies.
A cut-through clause gives the policyholder or claimant a direct payment claim against the reinsurer if the primary insurer – typically a fronting company – fails.
The property cyber exclusion removes cyber-related losses from traditional property policies to eliminate "silent" (non-affirmative) cyber exposure and to channel cyber risk into standalone cyber policies.
The cyber systemic risk exclusion (infrastructure exclusion) removes accumulation losses arising from the large-scale failure of third-party digital infrastructure (e.g. cloud providers, internet backbone, power grid) from cyber cover, irrespective of any war or state nexus.
LMA5567 excludes losses in cyber policies caused by a cyber attack carried out in the course of war or attributable to a state as a hostile act, but requires a demonstrable attribution process before it applies.
The debris removal clause covers, in addition to the underlying property damage, the cost of clearing debris and wreckage produced by an insured event, usually subject to its own percentage limit or separate sub-limit above the sum insured.
The declaration/reporting date clause adjusts the sum insured for stock values that fluctuate significantly by reference to regular, usually monthly, reports of the actual value on hand, avoiding both underinsurance and premium waste.
An AHB clause under which the policyholder bears a fixed amount of each indemnity payment for every insured event, regardless of the size of the established claim.
The defects exclusion clauses (London Engineering Group LEG 1–3 and Defective Condition DE 1–5) define the extent to which loss or damage caused by defective design, materials or workmanship is excluded from construction and erection all-risks cover.
Where premiums cannot be maintained, a life policy can be converted to a reduced, premium-free benefit instead of being cancelled.
The denial of access clause extends business interruption cover to loss of income caused when access to the insured's own, undamaged premises is prevented or seriously hindered by an insured event nearby.
The departmental clause requires that a business interruption loss be calculated separately for each department of a business, provided their trading results are independently ascertainable.
The DIC/DIL clause extends an existing local policy under a Controlled Master Program with the broader conditions (DIC) or higher limits (DIL) of the master policy where the local policy does not respond, or does not fully respond, to a loss.
The disappearance clause is a provision in accident and travel insurance under which an insured person who disappears following an accidental event – such as the sinking, crash or disappearance of a conveyance – and is not found within a set period (typically twelve months) is deemed to have died as a result of an accident, so that the death benefit becomes payable; if the person later turns up alive, the benefit must be repaid.
The doctor's orders clause required insureds under disability policies to follow medical instructions, and is now largely absent from modern policy wordings.
This clause governs notification, contribution and liability where the same interest against the same risk is insured with more than one insurer and the sums insured together exceed the insurable value.
The clause determines whether the insurer conducts the legal defence itself and bears its cost directly ("duty to defend") or only reimburses the insured for defence costs already incurred ("duty to indemnify"/"duty to pay").
The errors and omissions clause preserves cover under an international programme despite inadvertent administrative mistakes, such as a late notification or misrecorded local entity, provided the error is rectified promptly upon discovery.
The errors and omissions clause (reinsurance) ensures that unintentional mistakes or omissions in ceding, reporting or administering a risk do not automatically void cover, provided they are corrected promptly on discovery.
The ex-gratia payments clause governs whether and to what extent voluntary goodwill payments made by the cedent without legal liability are also shared by the reinsurer.
The expediting expenses clause covers extra costs incurred to speed up the repair or reinstatement of damaged property, thereby limiting the resulting business interruption loss.
The exposure clause in accident and travel insurance clarifies that bodily injury or death suffered by an insured person as a result of an accident through unavoidable exposure to the elements – such as freezing, heatstroke, dying of thirst or drowning after a crash, shipwreck or becoming lost – is deemed a consequence of the accident and triggers the table benefits.
The extended expiration or run-off clause ensures that losses arising from events occurring during the treaty period can still be settled under the treaty after its expiry.
A supplementary condition to product liability cover that partially reinstates the AHB exclusion for damage to goods manufactured or supplied by the policyholder, bringing certain processing and consequential defect losses back into cover.
A clause in claims-made policies allowing claims arising from wrongful acts committed during the policy period to be reported for a further defined period after expiry.
The extended reporting period allows an insured under a claims-made policy to report claims for wrongful acts committed before policy termination even after the policy has expired or been cancelled, without reopening the covered period itself.
The FINC clause indemnifies the parent company of an international programme for the diminution in value of its interest in a subsidiary that suffers an otherwise covered loss in a country where non-admitted insurance is prohibited.
A supplementary agreement in general liability cover that brings pure financial losses without a preceding bodily injury or property damage into cover under AHB clause 2.1.
The follow-the-fortunes clause binds the reinsurer to the cedent's fortunes: it must accept the cedent's good-faith, businesslike claims settlements without reopening them.
The follow-the-settlements clause contractually obliges the reinsurer to accept the cedent's claims settlement, provided it falls within the terms of the original policy and is made in good faith, without re-examining liability or quantum.
The fraud exclusion with a final adjudication proviso removes fraudulent or intentional misconduct from D&O cover, but only applies once such conduct has been finally established by a non-appealable judicial decision.
The fronting clause provides that a locally admitted insurer issues a policy on behalf of an international programme leader and cedes the bulk of the risk back to it through reinsurance.
The GAP clause (lease/loan gap cover) closes, in the event of a total loss or theft of a leased or financed vehicle, the gap between the replacement value paid under motor own-damage cover and the outstanding balance owed under the lease or loan agreement.
The general average clause confirms cover for a cargo owner's share of a general average, meaning value voluntarily sacrificed or expended to save the ship and cargo, usually assessed under the York-Antwerp Rules.
The AHB are the special policy conditions of German liability insurance that govern contract-specific terms and take precedence over general insurance conditions.
The good local standard clause requires that a local policy within an international programme provides at least the conditions, scope of cover and premium level that an insurer licensed in the country concerned would ordinarily quote a comparable local client.
The guaranteed insurability clause allows the sum insured to be increased on specified life events without a new health assessment.
The hammer clause caps the insurer's liability at the settlement amount it recommended, plus defence costs incurred up to that point, where the insured rejects a settlement the insurer regards as reasonable.
The clause excludes accidents arising from the practice of specifically named, particularly hazardous sports from cover.
This clause automatically brings newly added risks, business locations or activities of the policyholder into the existing cover for a limited period, without requiring separate advance notification.
In catastrophe reinsurance treaties, the hours clause defines the time window within which individual losses from a natural event may be aggregated into a single loss occurrence.
This clause requires the policyholder to notify the insurer without delay of any subsequent material increase in the insured risk, and sets out the consequences of a failure to notify, up to loss of cover.
The ICOW/AICOW clause governs the extent to which additional expenditure incurred to avoid or reduce a loss of turnover after an insured damage event is reimbursed under a business interruption policy.
The indemnity period clause defines the maximum period for which a business interruption policy indemnifies loss of income following an insured property damage event.
The index clause automatically adjusts the sum insured and premium in line with an agreed index (such as a construction cost or consumer price index), keeping cover in step with general price movements.
Index-linked replacement value is a valuation model used in German residential buildings insurance that ties the sum insured to the notional "1914 value" and an annually published adjustment factor, so it moves automatically with construction price inflation.
The innocent non-disclosure clause protects a good-faith co-insured from having another insured's intentional or negligent breach of the duty of disclosure imputed to them, provided they had no knowledge of the undisclosed circumstances themselves.
The insolvency clause requires the reinsurer to continue paying its share of a loss to the cedent's insolvency estate even if the cedent becomes insolvent and can no longer settle policyholder claims in full.
The Institute Cargo Clauses are the London market's standard wordings for marine cargo insurance, offering tiered levels of cover from comprehensive (A) through named perils (B) to basic cover (C).
The Institute War and Strikes Clauses exclude war, strikes, riots and similar political perils from standard cargo cover and make them available as a separately incepted extension with its own termination mechanisms.
The insured versus insured exclusion bars cover under a D&O policy for claims brought by an insured person or the insured company itself against another insured person.
The interdependency clause extends business interruption cover to loss of income at an insured location caused by an insured physical damage event at another, related location of the same insured or group.
The interest sharing clause governs, in excess-of-loss reinsurance, how default or litigation interest arising from a claim is allocated between the primary insurer and the reinsurer.
For a single event straddling the boundary between two consecutive treaty years, the interlocking clause provides that only one retention and one limit apply to the entire event, instead of charging both years separately.
The intermediary clause contractually designates the broker as payment agent between cedent and reinsurer, so that payments to the broker are treated as payment to the other party.
This clause determines which court has jurisdiction over disputes arising from the insurance contract and which substantive law applies, though mandatory consumer-protection rules narrowly restrict contractual freedom of choice.
The jurisdiction clause determines which state courts or arbitral tribunals will hear disputes arising from an international policy, independently of the governing substantive law.
This clause specifies the period within which claims under the insurance contract become time-barred, and clarifies whether and to what extent this period may be contractually shortened.
The loss corridor clause sets a band of loss ratios within which the cedent bears losses entirely on its own account, while the reinsurer is only liable below and above the corridor.
The loss occurrence definition clause specifies which individual losses count as a single loss occurrence for the purposes of the retention and limit under an excess of loss treaty.
A special agreement under AHB clause 2.2 that treats the loss of third-party keys, code cards or transponders as property damage and covers the cost of replacing locks and locking systems.
The loss payee / mortgagee clause protects the interest of a mortgagee or other loss payee in the insurance proceeds by making its claim, to varying degrees, independent of acts or breaches of duty by the policyholder.
The loss ratio cap clause limits the reinsurer's liability under a proportional treaty to a maximum loss ratio, above which any further loss reverts to the cedent.
The maintenance visits clause covers, under construction and erection insurance, loss or damage the contractor causes to the works while attending site during the maintenance period solely to fulfil contractual maintenance obligations, without the broader latent-defect cover of the extended maintenance clause.
The Mallorca policy clause raises the cover limits of German motor liability insurance for accidents involving vehicles hired in other European countries to the German statutory minimum, to the extent the local liability cover of the hire vehicle provides for lower limits.
The margin clause grants a percentage uplift on declared insurance values, protecting against the consequences of unintended underinsurance caused by value fluctuations.
The master policy clause defines the central policy of an international programme, issued in the parent company's home country, which supplements local policies through DIC/DIL and FINC mechanisms without replacing them.
The motor own damage exclusions clause generally removes certain causes and circumstances – in particular wilful acts, gross negligence, motorsport, and war, civil commotion and nuclear risks – from the scope of partial and fully comprehensive motor own-damage cover.
Munich Re endorsement 004 extends the maintenance-period cover of a construction or erection policy to loss or damage caused by the contractor during the construction period but first discovered during the maintenance period, going beyond the basic maintenance-visits cover.
Munich Re endorsement 006 extends a construction or erection policy to cover the extra costs of overtime, night work, work on public holidays and express freight incurred to expedite the repair of an insured loss, excluding airfreight.
Munich Re endorsement 013 extends a construction or erection policy to loss or damage to insured property temporarily held in a named off-site storage location away from the contract site, usually subject to its own sub-limit.
The named driver clause defines which persons may regularly drive a vehicle under the motor policy and forms the basis for premium calculation according to the statistical accident risk of that group of drivers.
The named windstorm clause imposes a distinct, usually percentage-based deductible for losses caused by an officially named tropical storm or hurricane, set higher than the general property deductible.
The natural hazards extension clause broadens fire and buildings insurance to cover natural perils such as flood, windstorm, hail, avalanche, snow pressure and landslip, and is compulsorily bundled with private fire insurance in Switzerland.
The net retained lines clause requires the cedent to keep a specified share of every ceded risk for its own account, ensuring an alignment of interest with the reinsurer.
The new-for-old replacement clause pays, in the event of total loss, destruction or theft of a new vehicle within a contractually defined period after first registration, the full new price instead of the lower replacement value.
The no-claims discount protection clause prevents, for an additional premium, one at-fault claim per calendar year in motor liability or own-damage insurance from downgrading the policyholder's no-claims class.
The non-admitted insurance clause provides that a master policy in an international programme covers a risk directly in a given country only where placement without a local licence is legally permitted there, otherwise pointing to a locally admitted policy.
The non-invalidation clause preserves cover for other parties, such as lenders or affiliated companies, even where cover would otherwise be invalidated as against the policyholder because of that policyholder's own breach of duty.
The notice of loss clause requires the policyholder to notify the insurer of a possible loss immediately or within a specified period, so that the insurer can direct investigation and adjustment in good time.
The offset clause allows the cedent and reinsurer to net mutual amounts owed under several contracts against each other instead of settling every payment individually.
The original conditions clause requires the reinsurer to apply the same terms, rates and scope of cover as under the underlying original policy, unless the reinsurance contract expressly provides otherwise.
The other insurance / contribution clause governs how several policies covering the same risk relate to one another in the event of a claim, in particular whether and in what proportion the insurers involved share the indemnity.
The pair and set clause provides that where one part of a pair or set (such as earrings or a furniture suite) is lost or damaged, the indemnity is generally limited to the proportionate value of the affected part rather than the value of the entire set.
The payroll clause governs the extent and period for which wage and salary costs are reimbursed as a continuing expense under a business interruption policy following an insured damage event.
A market-standard demarcation clause that excludes statutory liability arising from the use of a motor, aircraft or watercraft from personal or general liability cover, allocating it to compulsory motor liability insurance instead.
The piracy exclusion clause determines whether piracy losses in cargo and hull policies are excluded as a war risk or covered as a named peril in their own right, affecting premium and sublimits in high-risk areas.
The political risk clause extends property or credit cover to losses caused by expropriation, confiscation, nationalisation, currency and transfer restrictions, or a change of government in politically unstable markets.
The portability clause lets a person leaving a group daily sickness benefits policy move to an individual policy without a new health assessment.
The portfolio transfer / entry-withdrawal clause governs whether and how, at the start or end of a proportional treaty, unearned premium and outstanding claims reserves are transferred between the parties.
The power surge and scorching damage clause expressly brings damage from lightning-induced power surges or scorching without an actual fire within fire or electronic equipment cover, since neither would otherwise be covered under the narrow definition of fire.
The clause governs how a health or daily sickness benefits policy treats conditions that already existed at the time of application, for example through exclusion, a premium loading, or a waiting period.
This clause entitles the insurer to unilaterally adjust the premium during the policy term to reflect changed calculation bases (claims cost, mortality, loss statistics), usually subject to threshold values and a duty to give reasons.
The premium payment warranty requires the policyholder or cedent to pay the premium within a fixed period; if the deadline is missed the contract can terminate automatically or be cancelled by the insurer.
The premium reserve clause allows the reinsurer to withhold part of the reinsurance premium as a security reserve until the final loss experience of the treaty year is known.
Once disability is recognised, the insurer takes over the ongoing premiums for the main policy and, where applicable, attached riders.
The prior acts clause sets a retroactive date before which wrongful acts are excluded from cover, regardless of when the resulting claim is actually made.
The professional fees clause covers the necessary fees of architects, engineers and other professionals incurred in planning and supervising the reinstatement of property following an insured loss.
The clause governs how policyholders share in the surplus generated by a life insurance fund.
This clause grants immediate, but time-limited and substantively restricted, cover from an agreed point in time, before the final insurance contract is concluded or the policy issued.
The public utilities clause extends business interruption cover to loss of income resulting from an insured physical damage event at an electricity, gas, water or telecommunications supplier, without requiring any damage at the insured's own premises.
The radioactive contamination exclusion comprehensively removes damage caused by ionising radiation, nuclear fuel, nuclear installations, and chemical, biological and electromagnetic weapons from property cover.
The reinstatement clause governs whether, and on what terms, the coverage limit of a contract used up by a loss is restored for further events.
After cover has lapsed for non-payment of premium, it can be revived by paying the overdue premium.
The clause sets the period after an accident within which a relapse or late-developing consequence can still be claimed and the disability benefit reassessed.
The relatives clause excludes, in liability insurance, claims brought by relatives of the policyholder who live with them in the same household or are co-insured under the policy.
A supplementary agreement that lifts the AHB exclusion for damage to rented, leased or borrowed property, giving a tenant or lessee cover for damage they cause to the rented item itself.
This clause contractually defines which individuals within the policyholder's organisation count as representatives, whose intentional or grossly negligent conduct is attributed to the policyholder as if it were its own fault.
A clause in claims-made policies that moves the retroactive date back before the start of the policy, bringing wrongful acts committed but not yet known before inception into cover.
Where an insured person leaves a group insurance scheme, they may continue equivalent cover as an individual policy without waiting periods or a new risk assessment.
The salvage and subrogation clause governs how salvage proceeds and recovery rights arising from a loss are shared between cedent and reinsurer.
The salvage clause governs the rights and obligations of insurer and policyholder in dealing with damaged but still valuable property following a loss, in particular regarding the recovery, preservation and disposal of the residual value.
The sanctions clause clarifies that the insurer provides no cover and makes no payment to the extent that doing so would expose it to economic sanctions or embargoes.
The search and rescue costs clause extends accident or travel insurance to reimburse the cost of search, rescue, and recovery following an accident.
An AHB clause under which several causally connected insured events are treated as a single loss occurrence, deemed to have taken place at the time of the first event.
The service of suit clause requires an insurer domiciled outside the forum to submit to suit by the policyholder before the competent courts and to appoint an attorney authorised to accept service of process.
The severability clause treats each insured director or officer as separately insured for purposes of application statements and exclusions, so that one individual's misconduct or knowledge does not automatically jeopardise cover for all other insured persons.
The several liability clause (LMA3333) makes clear that each (re)insurer on a Lloyd's or company market contract is liable only for its own underwritten share and is not responsible for the default of any other participating underwriter.
The Side A/B/C structure divides a D&O policy into three insuring agreements: direct personal protection for directors and officers without indemnification (Side A), reimbursement of indemnification payments made by the company (Side B), and standalone entity cover for claims against the company itself (Side C).
The simple reinstatement clause pays the full replacement-cost indemnity once the policyholder credibly evidences an intention to reinstate, without requiring reinstatement to already be secured.
The sliding scale clause links the cedent's ceding commission under a proportional treaty to the actual loss experience: the better the loss ratio, the higher the commission.
The social engineering clause extends crime or cyber cover to financial loss arising when an employee is deceived (for example by spoofed emails or calls) into making a good-faith but fraudulently induced transfer of funds or property.
The special termination clause gives either or both parties the right to end the reinsurance treaty early upon defined trigger events such as a rating downgrade, change of control or solvency concerns.
The stability clause indexes the retention and limit of a non-proportional treaty to an agreed index, keeping the real coverage effect stable over the life of the treaty against inflation.
The strict reinstatement clause makes payment of the part of the indemnity exceeding the insurable value (the new-for-old uplift) conditional on reinstatement or replacement of the damaged property actually being secured.
The SRCC clause covers physical damage caused directly by strikers, locked-out workers, rioters or civil commotion, and is increasingly being carved out of all-risks property policies and offered separately or as a buy-back.
A contractual condition setting out the circumstances and extent to which damage caused by engaged subcontractors is covered under the main contractor's general liability policy.
The subrogation clause governs the transfer of the policyholder's recovery rights against third parties to the insurer once a claim has been paid, and aligns that right across the master and local policies of an international programme.
The subsidence and landslip clause extends property cover to damage caused by gradual sinking, heaving or slipping of the ground on which the insured building stands, typically excluding damage caused by mining, vibration or defective foundations.
The sue and labour clause requires the insured to take reasonable steps to avert or minimise a loss where an insured event threatens or occurs, and covers the costs reasonably incurred in doing so in addition to the sum insured.
The suicide clause excludes the death benefit under a life insurance policy if the life insured intentionally takes their own life within a set period after inception.
The sum insured equalisation clause offsets excess sums insured on one position within the same property policy against underinsured positions, so that no pro-rata reduction for underinsurance is applied.
The sunset clause sets a time bar after which losses under a terminated or lapsed reinsurance contract may no longer be notified or claimed.
The suppliers and customers extension broadens business interruption cover to loss of income resulting from an insured physical damage event at a named or unnamed supplier or customer.
The temporary removal clause extends cover to insured property that is temporarily removed from the insured location, for example for repair, cleaning or exhibition purposes, usually subject to a time limit and a percentage or sub-limit of cover.
This clause gives both the insurer and the policyholder a time-limited special right of termination that can be exercised after a claim has occurred and been settled.
The territorial scope clause defines the countries or regions in which an international programme or an individual policy provides cover, independently of where a lawsuit may be brought.
The territorial scope clause limits the geographic reach of a reinsurance treaty to specified countries or regions and addresses the treatment of cross-border risks.
The property terrorism exclusion excludes physical damage and consequential costs caused directly or indirectly by terrorism and places the burden of proving that a loss falls outside the exclusion on the policyholder.
The testing and commissioning clause sets out the conditions – in particular mechanical completion and a stable performance test over a minimum period – under which cover applies to plant during or after testing and commissioning, or attaches to an operational policy.
The clause limits theft cover to cases where the perpetrator gained entry to the insured building by force, leaving visible signs of forcible and violent entry, and typically excludes simple theft without evidence of a break-in.
The transit/duration clause defines when cover for machinery, plant components or contract works attaches and terminates during transport, interim storage and erection, and governs the interface between marine cargo and construction/erection cover.
The two-risk warranty requires that a loss claimed under a per-risk excess of loss treaty involves at least two independent risks or policies before cover responds.
The ultimate net loss clause defines which amounts – the principal loss, claims expenses and recoveries from other cover – are taken into account when calculating the net loss recoverable under a reinsurance treaty.
Where the sum insured is materially lower than the insurable value at the time of loss, the insurer indemnifies the loss only in the proportion that the sum insured bears to the insurable value.
A market-standard exclusion carving claims brought before United States or Canadian courts, or governed by their law, out of an otherwise granted worldwide liability extension.
A clause confirming that general liability cover also responds to the policyholder's statutory liability for the fault of vicarious agents, such as subcontractors and freelancers, engaged to perform its obligations.
The waiting period is the time-based deferment that must elapse after the onset of a cyber-related business interruption before cyber BI cover responds.
Waiting period and deferred period describe time spans after policy inception, or after a claim event occurs, during which no benefit is yet payable.
This clause contractually waives the insurer's statutory right to reduce or refuse its benefit where the policyholder caused the insured event through gross negligence, placing the policyholder in the same economic position as for ordinary negligence.
The clause waives, within motor own-damage cover, the insurer's statutory right to reduce indemnity for gross negligence in causing a vehicle claim, except for drink-driving or other expressly excluded breaches.
Under a waiver of subrogation, the insurer waives its right to recover a paid loss from specified third parties – for example group companies, tenants or contract partners.
The insurer contractually waives reliance on the average clause where underinsurance is established, and indemnifies in full up to the sum insured, provided the value was determined under the agreed valuation method.
The war and terrorism clause in business travel insurance excludes losses arising from war, civil war, warlike events and terrorism in principle, but market practice grants a passive write-back for travellers who are caught up in such an event as non-participants – time-limited, without cover for known crisis zones and without capital benefits unless an endorsement is agreed.
The war clause excludes or limits the life insurance benefit where the death of the life insured is directly caused by acts of war.
The warranty of retention guarantees that the cedent actually retains the agreed net retention for its own account, unreduced, throughout the life of the treaty.
Supplementary cover for the operation of water-hazardous installations excluded under both the AHB and the basic environmental liability clause, responding to strict, no-fault liability for water pollution.
The clause confirms that accident cover generally applies worldwide and around the clock, regardless of where the life insured is located.
A market-standard extension lifting the AHB base exclusion for foreign loss events and bringing liability claims arising from temporary stays abroad back into cover.
The clause sets out in which countries, and for how long a stay, a health insurance policy provides benefits.
This clause provides that declarations under the insurance contract – such as terminations, notifications or contract amendments – must be made in written form or, at minimum, text form to be valid.