Radioactive Contamination Exclusion (CL356/CL370)

Purpose

Damage caused by radioactive contamination or by the use of nuclear, chemical, biological or electromagnetic weapons would be uncalculable in ordinary property markets given its potential scale and inherent uninsurability. The clause therefore removes this risk entirely from cover as a “paramount” exclusion that overrides any conflicting policy provisions.

Effect and limits

Excluded are losses caused by ionising radiation or contamination from radioactivity arising from nuclear fuel or nuclear waste, by the hazardous properties of a nuclear installation or nuclear component, by any weapon or device employing atomic or nuclear fission or fusion, and by chemical, biological, bio-chemical or electromagnetic weapons. An important carve-back applies to radioactive isotopes other than nuclear fuel where they are prepared, carried, stored or used for commercial, agricultural, medical or scientific peaceful purposes – for example medical radiotherapy sources. CL356 is an older, narrower version still used in some market segments.

Negotiation and practice

Businesses with premises near nuclear installations or with medical/radiological operations should check whether the peaceful-isotope carve-back is sufficient or whether dedicated nuclear liability cover through national pools is required. Because the clause operates as a “paramount clause” overriding any conflicting policy term, buying back cover through other policy provisions is generally not possible.