On 18 April 1906, an earthquake and the fires that followed destroyed more than 80 percent of San Francisco. Some insurers refused claims, arguing that the policies covered fire but not earthquake, or the reverse.
The Lloyd’s underwriter Cuthbert Heath instructed his San Francisco agent to “pay all of our policy-holders in full, irrespective of the terms of their policies.” The prompt and full payment of every claim helped cement Lloyd’s reputation for paying reliably, and made it an important partner for American brokers.