Here are some of the wording changes we have been following. Some of these exclusions are likely to be in place permanently. Others may endure only while the property/casualty market remains as hard as it is today. Some of these exclusions have been approved by the Insurance Bureau of Canada (IBC), the body that publishes recommended wordings in Canada. For some of these coverage reductions, alternative standalone cover is available from the specialty market.

• Terrorism exclusions—Late last year, IBC introduced a terrorism exclusion that has been implemented universally. In the absence of a government-backed reinsurance plan for acts of terrorism for Canadian insurers, this exclusion will remain for some time.
• Environmental exclusion—IBC released new environmental exclusions to the GL policy last year. Many insurers have yet to implement these wordings, but others have implemented their own variants on the IBC model. Because of the complexity of the environmental exclusion, it is important to recognize the differences.
• Asbestos exclusion—After the asbestos scares in the mid-1980s, fears about asbestos gradually subsided, but several high-profile verdicts in the last 36 months have thrust asbestos back to centre stage. As a result, several carriers will quote only with an asbestos exclusion.
• Roofing and welding warranties—In the last two years, insurers have been shocked by several large losses from roofers, welders and other specialty construction risks, and have responded with a variety of exclusions and warranties. It is important for both general and subcontractors to be aware of such warranties and match loss-control practices with them.
• Building envelope exclusions—As a result of the leaky condo litigation in British Columbia, insurers have introduced a variety of exclusions and warranties for contractors and suppliers of building materials who may be at risk for this and similar litigation.
• Mould exclusion—Following adverse court verdicts in the U.S., American carriers and underwriters at Lloyd's have become very concerned about this emerging exposure. Several forms of mould exclusion were circulated during 2002, and IBC has recently introduced a standard mould exclusion that is likely to be implemented on a more general basis in 2003.
• Sexual abuse hazard—Some insurers are adding a sexual abuse exclusion to their standard GL wording. There is no sexual abuse exclusion published by IBC.
• Data and media liability exclusions—Late last year, IBC introduced a new data exclusion that has been implemented universally. Clients who operate web sites, newsgroups, or other internal or external computerized message boards—even communication by e-mail—may find that the libel risks of these electronic media are now expressly excluded by their standard policy wordings. Litigation for libel and slander offences is at record levels, so it is important to recognize and evaluate these new exposures and select suitable coverages from the specialty market. Our Media Liability program provides broad protection for libel risks arising from electronic publishing as well as print publishing, broadcasting and advertising. More information on this and our other programs is available on our web site.
• Claims-made policies—Claimsmade covers have become more common as the market has hardened. More information on the claims-made form is available in the AQOL archive on our web site.