Strike, Riot, Civil Commotion and Malicious Acts Exclusion This Exclusion applies to all coverage grant(s) under the Policy, including extensions, additional coverages and exceptions to any exclusion. This Exclusion shall be paramount and shall override anything contained in the Policy inconsistent with it. In the event any part or term of this Exclusion is found to be invalid or unenforceable, the remainder shall remain in full force and effect. 1. The Policy does not insure any loss, damage, claim, cost, expense or other sum of whatsoever nature, directly or indirectly caused by, resulting from, arising out of or in connection with any Strike, Riot, Civil Commotion and/or Malicious Act, including any action taken by any person or authority in controlling, preventing or suppressing any Strike, Riot, Civil Commotion and/or Malicious Act. This Exclusion applies regardless of whether any loss, damage, claim, cost, expense or other sum of whatsoever nature is caused by, results from, arises out of or in connection with any other cause or event contributing concurrently or in any other sequence to it. 2. If Underwriters allege that by reason of this Exclusion, any loss, damage, claim, cost, expense or other sum of whatsoever nature is not covered, the burden of proving the contrary shall be upon the Insured. 3. Definitions For the purposes of this Exclusion, Strike, Riot, Civil Commotion and Malicious Act mean: Strike means a lockout or total or partial work stoppage to enforce demands made on an employer or to protest against an act or condition. Riot means a violent disturbance by a group of persons assembled together for a common purpose which threatens the public peace. Civil Commotion means a substantial violent disturbance by a large number of persons assembled together and acting with common purpose or intent. Malicious Act means deliberate act(s) causing loss of or damage to property during and/or following Strike, Riot or Civil Commotion, including but not limited to vandalism, looting, theft of or the taking of goods by force. Except as provided for in this Exclusion, all other terms, conditions and exclusions of the Policy remain the same and fully applicable. LMA 5553 05 August 2021
Hello there! As a reinsurance lawyer, I'm here to help you analyze the Strike, Riot, Civil Commotion and Malicious Acts Exclusion in your insurance policy. This exclusion is quite broad and aims to exclude coverage for any loss or damage resulting from various types of civil unrest and malicious acts.
Let's break it down:
- The exclusion applies to all coverage grants under the policy, including extensions and additional coverages. It also overrides any conflicting language in the policy.
- The exclusion explicitly states that it applies to losses caused by, resulting from, arising out of, or in connection with any strike, riot, civil commotion, or malicious act. This includes any action taken by authorities to control, prevent, or suppress such events.
- The exclusion also includes a burden of proof clause, stating that if the insurer alleges that a loss is not covered due to this exclusion, the burden of proving the contrary shall fall to the insured.
- The definition of strike, riot, civil commotion, and malicious act are quite broad and include a range of violent and destructive events.
Elasticity Clause Analysis:
Type: Coverage-related, Exclusion, Total, without any carve-backs, no exceptions present.
Clause Independence: Yes, the clause has a clear and independent meaning, and there are no references to other clauses or sections in the policy.
Scope: The exclusion applies to all coverage grants under the policy, including extensions and additional coverages.
Elasticity: Low, as the clause includes a clear and exhaustive list of events that are excluded from coverage, and the language used is quite broad and encompassing.
Others: The burden of proof is placed on the insured to prove that a loss is not covered by the exclusion.
Elasticity Score: 1
In conclusion, this exclusion is quite restrictive and aims to exclude coverage for a wide range of civil unrest and malicious acts. The language used is clear and broad, making it difficult for the insured to argue that a loss is covered. The burden of proof being placed on the insured adds an extra layer of difficulty in making a successful claim. As a reinsurance lawyer, I would advise policyholders to carefully review this exclusion and understand its implications before purchasing the policy.
This conversation may have been edited by the sharer.