Commercial Wording Changes

Effective January 11, 2024, for new business and February 11, 2024, for renewals, wording changes will be implemented across 35 different forms. These changes aim to enhance clarity and align with industry standards.  
Varied Terms Letters (VTL) will be automatically generated for renewals. 

February 11, 2024 to May 13, 2024 renewals: The VTL will include the existing Guidewire conversion changes and the new changes;
May 14, 2024 and onward: The VTL will only include the new changes. 

Please consult the documentation sent to you or reach out to your underwriter for assistance. 
Wording changes include: 
Exclusions – a number of exclusions have been clarified for intent. 

Property Cyber Loss and Data Exclusion 

Definitions of “Cyber Loss,” “Cyber Act” and “Cyber Incident” added to clarify scope.
Physical damage to the insured property caused by a specified peril which directly result from a cyber event is no longer covered.  


Terrorism Exclusion – updated the definition of “terrorism” to include a terrorism act committed by a person whether acting alone or on behalf of, or in connection with any organization or government.
Nuclear Incident and Radioactive Material Exclusion has been updated to include an industry-standard and more expansive anti-concurrent loss language: whether or not there are one or more other causes or events (whether covered or not) that contribute concurrently or in any sequence to the occasioning of the loss or damage.
Dishonest or Criminal Act Exclusion has been amended to add an exception to protect the innocent co-insured up to their proportional interest in the insured property.
Voluntary Parting Exclusion has been added to clarify intent on loss of property due to trickery. 

Coverages: Please check the Declarations for coverages that apply to the policy.  
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The following changes to Exclusions have been made:

War and Civil War Exclusion has been replaced by War and Cyber War Exclusion.
Asbestos, Pollution and Contamination Exclusion has been added. 



Equipment Breakdown 
The following changes have been made to Exclusions:  

Cyber Exclusion – now an absolute exclusion.
Water Damage Exclusion – now an absolute exclusion under this coverage. Please speak with your underwriter to ensure that this is covered under the property policy.
Sanctions Exclusion – this has been added and means there is no coverage for loss in any location where trade or economic sanctions have been imposed by UN, the United States, European Union or Canada. 

Other  

G00124 – Water Damage Deductible Endorsement has been updated to clarify that water damage does not include any loss or damage caused by flood and sewer back-up.
The definition of Actual Cash Value has been added or updated in applicable forms.