Official text
War and Cyber Operation Exclusion No. 2
(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 that is carried out as part of a war, or the immediate preparation for a war; and/or
1.3. arising from a cyber operation that causes a state to become an impacted state.
2. Subject to the exclusions above and the other terms, conditions and exclusions contained in this insurance, the following limits shall apply to any other cyber operation(s):
2.1. {response} for any cover in relation to all loss arising out of one cyber operation;
2.2. {response} in the aggregate for the period of insurance.
These limits shall apply within the full policy limit and not in addition thereto. Unless an amount is specified in 2.1 and 2.2, there shall be no coverage for any cyber operation(s).
Attribution of a cyber operation to a state
3. 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
4. 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.
5. Cyber operation means the use of a computer system by, at the direction of, or under the control of a state to:
5.1. disrupt, deny access to or degrade functionality of a computer system, and/or
5.2. copy, remove, manipulate, deny access to or destroy information in a computer system.
6. Essential service means a service that is essential for the maintenance of vital functions of a state including but not limited to, financial institutions and associated financial market infrastructure, health services or utility services.
7. Impacted state means any state where a cyber operation has had a major detrimental impact on:
7.1. the functioning of that state due to disruption to the availability, integrity or delivery of an essential service in that state, and/or
7.2. the security or defence of that state.
8. State means sovereign state.
9. War means armed conflict involving physical force:
9.1. by a state against another state, or
9.2. as part of a civil war, rebellion, revolution, insurrection, military action or usurpation of power, whether war be declared or not.
LMA5565A - 18 January 2023
Official text LMA ↗Covered scope
Capped write-back. Beyond the war and impacted-state exclusions, cover for other cyber operations survives but is bounded by two limits that must be filled in: one per operation and one in the aggregate. Leave the amounts blank and there is no cyber cover at all.
Excluded scope
Excludes war, cyber war operations, and any cyber operation that renders a state impacted. It introduces the systemic-impact threshold that 5564 lacks, while capping whatever is left.
Use cases
For the insurer who will write non-systemic state cyber operations but wants the exposure priced through dedicated sub-limits.
Limitations
The cap adds complexity and forces amounts to be agreed; without them the wording collapses into a flat exclusion. Whether a state is impacted remains a matter of interpretation.
Context
The 2023 revision of 5565: specified states and retaliatory operations (2021) are gone; the impacted-state threshold and the cap remain.
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.
Purely informational tool. No personal data collected, no trackers.
Type classification inferred by AlgoPolis from official Lloyd's definitions, to be confirmed with the LMA.
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