Chapter 1

Appendix 11.1: Casualty exclusions 1

Appendix 11.1: Casualty exclusions

Chapter 2
Set out below are non-exhaustive lists of common exclusions that appear in casualty reinsurance
contracts (other than motor).
General third-party liability exclusions

Chapter 3
1. General
a. Products guarantee and recall, defective design liability.
b. Employers’ liability.
c. Errors and omissions, medical malpractice, fiduciary liability.
d. Ocean marine liability including warehousemen’s legal liability.

Chapter 4
e.  rganisational liability being broad form coverage for financial institutions including but not
O
limited to professional indemnity, directors and officers, broad form crime and computer
crime,unauthorised trading, employment practices liability and pensions trust liability.
f. Liability
 sections of combined/package policies such as multi peril, all risks and whole account
policies, erection all risks, contractors all risks.

Chapter 5
2. The ownership, operation or use of:
a. Automobiles.
b. Aircraft and air-cushioned vehicles, including construction, repair or installation work on
aircraft.
c. Railways, tramways and cable cars.
d. Aerodromes and airports.

Chapter 6
e. Ports.
f. Offshore platforms and rigs but not excluding temporary maintenance and service visits.
g. Shipbuilding,
 ship repairing and ship breaking yards including construction, repair or
installation work on ocean-going vessels.
h. Vessels
 including their navigation, however this exclusion shall not apply to vessels 25ft in

Chapter 7
length and below.
i. Amusement parks and their devices.
j. Ski resort.
k. Waste disposal and deposit.
3. Contractors on a standalone basis (a) engaged exclusively in wrecking and/or demolition, (b)

Chapter 8
engaged in construction and/or maintenance of dams, or (c) engaged in subaqueous work.
4. Companies exclusively engaged in (a) underground and underwater mining and all underground
services in connection therewith (b) tunnelling including excavation work in connection therewith
(c) quarrying if explosives are used.
5. Gases, explosives and toxics
Chapter 9

a. Manufacture and/or production, storage, filling, breaking down, transport of:

i. Fireworks, fuses, cartridges, ammunition, powder, nitro-glycerine or any explosives except
storage and transport within the scope of retail and utility business.
ii. Gases and/or air under pressure in container except retail business.
iii. Butane, methane, propane and other liquefied gases except retail business.
iv. Toxic substances and toxic waste.
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b. Operations
 in connection with the production, storage, distribution and/or sale of natural gas
other than an integrated part of a utility operator.
6. Oil companies – drilling, producing, refining, storing and/or distributing (other than petrol stations).
Chapter
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Chapter 1 2 M97 March 2024 Reinsurance

Appendix 11.1: Casualty exclusions

Chapter 2

7. Public utilities, public authorities (including fire brigades, police and law enforcement), municipalities,
water boards, electricity and gas boards, military.
8. Other companies: private security companies if no full terrorism exclusion applies under original
policies, or event operators/organisers for events with more than 10,000 participants if no full
Chapter 3

terrorism exclusion applies under original policies.

9.  ovine spongiform encephalopathy (BSE)/transmissible spongiform encephalopathy (TSE) under
B
policies issued to animal feeds manufacturers, meat producing and meat processing companies.
10. Acquired
 immune deficiency syndrome (AIDS)/human immunodeficiency virus (HIV)-related
disease on the following products: preparation of human blood, preparation and products of
Chapter 4

human blood and serum, preparation and products of other human body liquids.
11. G
 enetic engineering, manipulation or modification resulting in so-called genetically modified
organisms (GMO).
12. Asbestos.
13. Toxic mould.
Chapter 5

14. Electromagnetic fields.

Products liability exclusions
1. Products liability policies issued to companies/plants involved in the manufacturing/production of:
– Explosives, fireworks, gases and volatile petroleum products.
– Drugs, medicines, pharmaceuticals other than the activities of retail chemists and pharmacies.
Chapter 6

– Chemicals (dyes, cosmetics, beauty products, crop sprays, fertilizers, insecticides, pest and
weed control, fumigants, animal feeds) other than the activities of retail outlets.
– Ready mix concrete and concrete prefabricated elements for construction purposes.
– Manufacturers and/or producers of electronic control equipment used in aircraft of any kind,
spacecraft of any kind, navigation systems for coastal and ocean going vessels, offshore
installations, traffic control or regulation systems of any kind.
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– Machinery exclusively designed to aid in medical diagnosis and any kind of surgery as well as
any kind of prosthesis or artificial implants.
– Tobacco and tobacco products.
– Genetically modified products.
– Asbestos products.
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2. Products liability in respect of the manufacturers of:

– Automobiles and/or motorcycles and the following parts thereof: structure, driving equipment,
safety features, wheel frame, undercarriage, brakes and steering equipment, tyres and helmets.
– Aircraft and the following aircraft components: structure, driving equipment, landing gear,
understructure, electronic equipment, hydraulic equipment and technical instruments.
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– Inland, coastal and ocean-going vessels (other than yachts and pleasure craft).
3. Products liability without carrying an annual aggregate limitation.
4. Products integrity impairment, products tampering.
5. Products guarantee and/or recall.
6. Gradual pollution.
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7. Blood banks.
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 Chapter 1
Appendix 11.1: Casualty exclusions 3

Appendix 11.1: Casualty exclusions

Chapter 2
Directors and officers exclusions
• Policies not on a ‘claims made’ basis.
• Covers for individual executives rather than from an entire board of management, supervisory board
or an entire management.

Chapter 3
• Insider trading in the USA.
• Unrestricted cover of internal claims in the USA except for shareholder derivative suits.
• Cases in which insureds are insurers (conflict of interest).
• Professional indemnity claims.
• Fortune 500 companies.

Chapter 4
• Entity coverage.
• Insured versus insured coverages.
• Directors and officers cover for companies whose shares are traded on a US Stock Exchange and/or
for companies that issue American depository receipts.
• Allied coverages for securities liability, independent directors’ liability, general partnership liability,
trust department errors and omissions liability and fiduciary liability.

Chapter 5
Professional indemnity exclusions
1. Reinsurance brokers, insurance brokers with international activities, insurance brokers mainly
involved in industrial business and stock exchange brokers.
2. Banks, stock exchanges, and other financial institutions.
3. Reinsurance companies, insurance companies and captive insurance companies.

Chapter 6
4. Management consulting companies.
5.  lectronic data processing (EDP) software companies exclusively developing software for financial
E
institutions and banks as well as developing relevant security software such as firewalls.
6. Accountants/auditors if international activities involved.
7. Professional indemnity for hospitals.

Chapter 7
8. Lloyd’s underwriting agencies.
Workers’ compensation and/or employers’ liability exclusions
1. All underground work including sewers and drainage systems.
2. 
Construction, demolition or maintenance of high rise buildings, bridges, towers, steeples or chimney
shafts.
3. 
Occupational disease and cumulative injury losses except for occupational disease losses arising out Chapter 8
of a sudden and accidental event, not exceeding 48 hours in duration, which also involves traumatic
injury and/or death.
4. Aircraft crews and/or persons involved in aircraft inspection, testing and/or maintenance.
5. Professional sports teams
Chapter 9

6. Ship’s crew and/or seamen

7. Employment in the military, police, security or fire brigade.
Chapter 10
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