About the undertaking
Lloyd's requires all coverholders to sign an undertaking, which reflects the coverholder's relationship with Lloyd's. The undertaking sets out, in clear terms, what Lloyd's expects of coverholders when they deal with their customers, clients, Lloyd's brokers, managing agents and Lloyd's.
By signing the undertaking, the applicant agrees to act in line with the terms of its binding authority and any local requirements of the territory in which it is based or in which it will trade, provide services or do business. The applicant also agrees to certain conditions that would apply if Lloyd’s withdrew its approval or otherwise stopped it from accepting business under a binding authority. The undertaking also requires the coverholder to comply with the guidance Lloyd's issues on using the Lloyd's name; click here for a link to the brand guidelines.
Applicants going through the new coverholder approval process sign the coverholder undertaking when they fill out their application form. Since its introduction in 2004, all approved coverholders have signed the undertaking.
Coverholder Undertaking (143KB, doc)
2008 Changes
In 2008 we made a small change to paragraph 1.2 of the undertaking. This change made it clear that coverholders are expected to comply with any guidance published on lloyds.com; for example, the guidance given in 'Crystal'.
Italian co-operation agreement
For clarification, the Italian co-operation agreement, which Italian firms need to provide to the Lloyd's Italian office once they have been approved as coverholders, does not form part of the undertaking. It is a separate document that needs to be submitted.
Coverholder undertaking questions and answers (Q&As)
This document covers questions about the undertaking.
Coverholder undertaking Q&As (37KB, pdf)
Addenda - no longer required
Until February 2008, in addition to the coverholder undertaking, there were a number of separate addenda for territories which have other specific compliance requirements that must be adhered to. The territories for which addenda were required were Canada, France, Germany, Illinois, Kentucky, Monaco, Switzerland and US Virgin Islands.
In view of the change to the undertaking made earlier in 2008, the addenda were removed from usage from that month.
