The “family” of held covered clauses

26.1 War risks policies, in common with many types of insurance contract, often contain held covered clauses. In war risks insurance, these frequently appears in connection with entry to an area for which an additional premium is chargeable by the underwriter due to the prevailing political circumstances in the region. The current clause regulating the entry into an “area of perceived enhanced risk” (APER) is considered in Chapter 24. The effect of a “held covered” clause is to alter the legal consequences of non-compliance with policy limits, or other circumstances in which cover would be reduced. This family of clauses reflect market practice and their precise legal effect have troubled the courts.