LMA publishes SME property model wording

The Lloyd’s Market Association (LMA) has launched new model wording for small and medium-sized enterprise (SME) property and business interruption insurance. 

Developed in response to demand from members, the wording builds on the LMA’s existing consumer household insurance policy and is designed to provide a standardised policy for SME risks.

The model wording covers damage to insured property and related business interruption losses. It also includes optional extensions, such as cover for business interruption arising from damage at the premises of a direct customer or supplier.

According to the LMA, the wording has been drafted using plain language to improve accessibility and support compliance with the FCA’s Consumer Duty requirements.

David Powell, head of technical underwriting, said the model wording reflected the association’s ongoing efforts to support the market with practical and compliant documentation.

“This new model wording reflects our ongoing commitment to supporting the market with clear, practical and compliant documentation,” he said.

Customer clarity

Development of the wording was led by the LMA’s UK/International Commercial Property and Household Business Panel.

Powell added that using consumer-friendly language while aligning with regulatory expectations would help members deliver better customer outcomes without compromising technical standards.

He said: “We are helping our members deliver better outcomes for SME clients while maintaining the technical robustness the market expects.”

The new wording is now available through the Lloyd’s Wordings Repository and follows requests from LMA members for a model policy tailored specifically to SME property and business interruption risks.