It’s important for insureds to carefully review current liability and cyber policies to determine what coverages and gaps may exist. (ALM Media archives)As cyber criminals become ever more ruthless, the risks and damages that these hackers can unleash on insureds become more serious. Insurance and risk professionals can create value for clients by staying current on the latest cybersecurity threats and mitigation efforts, including those that may result in physical losses or personal injury.
Such events are now known as “cyber-physical attacks.” While these attacks and this risk are not new, the insurance industry as a whole has been slow to respond to them.
Evolving coverage needs
Traditional cyber insurance policies often exclude coverage for bodily injury, whereas marine and hull cargo insurance policies often exclude coverage for “loss, damage, liability, or expense directly or indirectly caused by or contributed to by or arising from the use or operations, as a means for inflicting harm, of any computer,” for example.
Policyholders may have good arguments that commercial general liability (CGL) insurance policies should cover third-party liability claims…
