The FSA has published a statement on use of the phrase ‘consequential loss’ in general insurance contracts aimed at consumers. The FSA considers that any term which excludes 'consequential loss' may be unfair under Regulation 5 of the Unfair Terms in Consumer Contracts Regulations 1999. This is because a term that is so unclear and ambiguous that it leaves the consumer not knowing for what they are covered may, in the FSA’s view, constitute 'a significant imbalance in the parties' rights and obligations to the detriment of the consumer'. The FSA warns insurers that they are expected to comply with the Regulations. To read the statement, please go to http://www.fsa.gov.uk/pubs/other/consequential_loss.pdf.