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November 2019 / Marine Cyber Exclusion - New Exclusion Clauses from Lloyd's

We would like to advise that the LMA (Lloyd's Market Association) has prepared the above mentioned attachments LMA5402 (non-war related policies) and LMA 5403 (war related policies).

While Lloyd's intention is to bring these into use as of 1 January 2020, it is learnt that some underwriters are trying to implement its use immediately. 

The intention of these exclusions are to exclude direct or indirect loss of, damages, liabilities or expenses as a result of the following risks.

1.1 the failure, error or malfunction of any computer, computer system, computer software programme, code, or process or any other electronic system, or

1.2 the use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme, malicious code, computer virus or process or any other electronic system.

It should be remembered that the Institiute Cyber Attack Exclusion Clause CL.380 - 10.11.2003 (which has been in use for a long time already) excludes above 1.2 already so the new LMA5402 & 3 is even expanding the exclusion to :

 

"the failure, error or malfunction of any computer, computer system, computer software programme, code, or process or any other electronic system,"