Lloyd’s enforces Iran sanctions

Lloyd’s will cut its coverage for refined oil shipments to Iran if the US passes wide-ranging sanctions legislation, the FT reports.

“If the legislation is passed and sanctions are put in place by the US, we would comply and ensure underwriters in Lloyd’s were compliant, although we would not want the compliance burden to be disproportionate,” said Sean McGovern, general counsel for Lloyd’s.

Lloyd’s is telling underwriters to review their contracts to look for ships heading to Iran. Underwriters might have to be sure that a ship they had covered would not be going to Iran.

Insurance for ships serving Iranian ports would become harder to obtain and more expensive.