Is malware war? Are losses arising from malware excluded from your property insurance policy?
These are questions businesses should consider. There are, of course, policies specifically written to cover cyber breaches and other data security incidents. But, these types of policies are, indeed, different from property policies. Even if both types of policies contain similarly named/titled terms, conditions, and exclusions, they intend to cover different risks and their language can be different.
Some recent cyber incidents have given rise to an examination of cyber losses under property coverage and provide a reminder that a good risk management program keeps the differences between property and cyber coverage in mind. Business leaders must consider the specific language of their insurance policies before assuming what is covered and what is excluded because, in the end, the specific language of each insurance contract will control any dispute over a claim.
The Evolution of Property Policies
Today’s common property insurance policies developed from insurance originally designed to protect property owners from the risk of fire. That is, they were designed to cover…
