Official text
War and Cyber Operation Exclusion No. 3
(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.
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. 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.
6. Impacted state means any state where a cyber operation has a major detrimental impact on:
6.1. the functioning of that state due to disruption to the availability, integrity or delivery of an essential service in that state, and/or
6.2. the security or defence of that state.
7. State means sovereign state.
8. War means armed conflict involving physical force:
8.1. by a state against another state, or
8.2. as part of a civil war, rebellion, revolution, insurrection, military action or usurpation of power, whether war be declared or not.
LMA5566A - 18 January 2023
Official text LMA ↗Covered scope
Uncapped write-back. The same exclusions as 5565 (war, cyber war operations, impacted state), but without the limit machinery of clause 2. Whatever is not excluded is covered within the policy limit, with no dedicated sub-limit.
Excluded scope
Substantively the same as 5565 save for the cap, which is absent here. That is the only structural difference: 5566 leaves a wider residual cover because nothing bounds it.
Use cases
Where the insurer accepts the same thresholds as 5565 but does not want, or does not need, to bound the write-back with a sub-limit, limits being managed elsewhere in the programme.
Limitations
With no sub-limit, accumulation across covered non-systemic cyber operations can run wider. Whether a state is impacted remains a matter of interpretation.
Context
The 2023 revision of 5566. A textbook pair: the 5565 / 5566 comparison isolates the effect of one clause, the cap, on the economics of the cover.
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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