British territory in the Atlantic (7)
I believe the answer is:
'british territory in the atlantic' is the definition.
(I've seen this in another clue)
This is all the clue.
(Other definitions for bermuda that I've seen before include "Rub dame up the wrong way on the islands" , "Producer of rum" , "shorts originated here" , "British colony, capital Hamilton" , "N. Atlantic island group" .)