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Business interruption exposures covered under many cyber policies

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Business interruption coverage for cyber-related incidents is readily available as part of a cyber insurance policy, experts say.

This could include basic business interruption coverage, as well as contingent business interruption coverage, which covers business interruption caused by a third party such as a cloud vendor.

Also available is systems failure coverage, when there is a system failure that is not necessarily attributable to a breach, such as an electrical failure.

Cyber-related business interruption coverage is “really the No. 1 concern of our clients across all industries,” said Stephanie Snyder, Chicagobased senior vice president with Aon Professional Risk Solutions.

Christian Hoffman, national practice leader of Aon Risk Solutions’ financial services group in New York, said that where previously business interruption had been offered on a sublimit basis, policyholders can now obtain full policy limits and less strict waiting periods before the coverage is effective, while contingent coverage is no longer limited just to technology vendors.

Experts say one potential problem for insurers with respect to contingent business interruption coverage is the danger of an accumulation of risk.

“One significant cloud service provider or other service provider having a loss could trigger loss across a significant portion of the book of business,” said Nicholas Economidis, Philadelphiabased underwriter of professional liability and specialty lines at Beazley P.L.C.