The Lloyd’s Market Association has published a new model wording for small and medium sized enterprises covering property damage and business interruption.
The wording encompasses physical damage to insured property and related business interruption losses, with optional extensions including disruption caused by damage at the premises of a direct customer or supplier.
The draft places emphasis on clearer language and improved readability. It is intended to support alignment with the Financial Conduct Authority’s Consumer Duty requirements, which place expectations on firms to ensure communications are understandable and support good customer outcomes.
Development was led by the LMA’s UK and international commercial property and household business panel.
David Powell, head of technical underwriting at the LMA said: “This new model wording reflects our ongoing commitment to supporting the market with clear, practical and compliant documentation. By focusing on plain, consumer-friendly language and ensuring alignment with regulatory expectations, we are helping our members deliver better outcomes for SME clients while maintaining the technical robustness the market expects.”
The wording is available via the Lloyd’s Wordings Repository.
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