Tag archives: Cyber insurance

Cyber cover must be specifically provided or excluded (Lloyd’s)

Lloyd’s of London requires its insurers to exclude or provide affirmative cover for cyber risks. Insurers connected to Lloyd’s must make sure they do not have unintended exposure to cyber risk. From the beginning of 2020 underwriters are required to ensure that their property damage policies specifically affirm or exclude cyber cover. This applies to … Continue reading

Cyber insurance and the war exclusion

Cyber insurers should note the debate going on in London regarding reform of the war exclusion clause in cyber insurance. The perpetrators of cyber incidents are often untraceable and it is difficult to ascertain whether they constitute state-sponsored acts of war subject to the war exclusion clause. There is at least one pending action where … Continue reading

Cyber risk warnings for insurers

The cautionary warnings continue for insurers regarding the cyber risks that they underwrite. Although cybersure is seen as one of the major opportunities for the insurance industry, there are a number of risks including the increasing frequency of cyberattacks, the difficulty in pricing for the risks, and the fact that existing policies, including liability and … Continue reading

CyRiM warns of up to $193 billion cyber risk – Insurers beware!

The Cyber Risk Management (CyRiM) Report 2019 shows that the economic damage to the world from a concerted global cyber-attack propagated by malicious email could range between $85 billion (least severe) to $193 billion (most severe). Retail at least could suffer the highest total economic loss globally ($15 billion), followed by healthcare ($10 billion) and manufacturing ($9 billion). It … Continue reading

Cyber breach claim fails under GLP because information not ‘published’ (US)

A Florida court held that the insurer had no duty to defend a hotel operator’s information technology subsidiary against allegations that it was responsible for a hacking incident that exposed hotel customers’ credit card data because, under the general liability policy, there was no ‘making known to any person or organisation covered material that violates … Continue reading

Cover for cyber breaches under general liability policies

If insurers don’t want to cover cyber liability under a general liability policy they’d better check their wordings and introduce exclusions if necessary. Whether or not cyber breaches are covered under the “personal and advertising injury” section of commercial general liability policies depends on the circumstances of each case. I discuss two cases which illustrate … Continue reading

Cyber threats, exposures and insurance

One of the main concerns for South African businesses is dealing with cyber threats. While loss or harm caused by cyber incidents is not entirely new, these incidents have become more common in recent years due to the rapid advances in technology and the changes in many business models. By way of an example, machines … Continue reading
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