Official text
War and Cyber Operation Exclusion No. 1
(For use on commercial cyber insurance contracts)
1. Notwithstanding any provision to the contrary in this insurance, this insurance does not cover that part of any loss, damage, liability, cost or expense of any kind:
1.1. directly or indirectly arising from a war, and/or
1.2. arising from a cyber operation.
Attribution of a cyber operation to a state
2. Notwithstanding the insurer's burden of proof, which shall remain unchanged by this clause, in determining attribution of a cyber operation to a state, the insured and insurer will consider such objectively reasonable evidence that is available to them. This may include formal or official attribution by the government of the state in which the computer system affected by the cyber operation is physically located to another state or those acting at its direction or under its control.
Definitions
3. Computer system means any computer, hardware, software, communications system, electronic device (including but not limited to, smart phone, laptop, tablet, wearable device), server, cloud infrastructure or microcontroller including any similar system or any configuration of the aforementioned and including any associated input, output, data storage device, networking equipment or back up facility. If there is any inconsistency between definitions of computer system in this exclusion and the contract of insurance, the definition in the contract of insurance shall apply.
4. Cyber operation means the use of a computer system by, at the direction of, or under the control of a state to:
4.1. disrupt, deny access to or degrade functionality of a computer system, and/or
4.2. copy, remove, manipulate, deny access to or destroy information in a computer system.
5. State means sovereign state.
6. War means armed conflict involving physical force:
6.1. by a state against another state, or
6.2. as part of a civil war, rebellion, revolution, insurrection, military action or usurpation of power, whether war be declared or not.
LMA5564A - 18 January 2023
Official text LMA ↗Covered scope
Almost nothing on the state-sponsored side. LMA 5564 excludes any cyber operation outright, with no impact threshold and no need to tie it to a war: a loss arising from a state-backed cyber operation falls away on its own.
Excluded scope
The most restrictive wording of the 2023 grid. Paragraph 1.2 excludes loss arising from a cyber operation, full stop, without the impacted-state concept found in the wordings above it. No write-back.
Use cases
Reserved for the most conservative risk appetites. Rarely written, because it strips a cyber policy of much of what the insured is buying.
Limitations
Blunt and hard to sell. The attribution clause sets out the evidential route without defining what counts as objectively reasonable evidence, which is where disputes start.
Context
The 18 January 2023 revision of the original 5564 (November 2021): shorter grid, compressed causation language, and the specified-states machinery removed.
This material is reproduced and annotated for educational purposes. For any contractual use, refer to the official wordings published by the Lloyd's Market Association and take insurance legal advice. AlgoPolis does not provide legal advice.
Legal disclaimer
English texts are reproduced for educational purposes from official LMA sources.
French translations are unofficial and produced by AlgoPolis for educational purposes only.
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Type classification inferred by AlgoPolis from official Lloyd's definitions, to be confirmed with the LMA.
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