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Does your policy cover acts of cyber terrorism or cyber warfare?

Many policies cover cyber terrorism, but might not cover cyber events that arise out of war.

By Eileen Garczynski, Esq. | November 08, 2023 at 01:08 AM
The war exclusion is intended to fully preclude coverage for losses directly caused by warfare, hostilities, invasion, rebellion, insurrection or revolution. War is often defined in the policy as any conflict declared or not declared, whether civil or international in nature. Of note, if war exclusions are too broad, they often encompass acts of cyber terrorism. Credit: the_lightwriter/Adobe Stock The war exclusion is intended to fully preclude coverage for losses directly caused by warfare, hostilities, invasion, rebellion, insurrection or revolution. War is often defined in the policy as any conflict declared or not declared, whether civil or international in nature. Of note, if war exclusions are too broad, they often encompass acts of cyber terrorism. Credit: the_lightwriter/Adobe Stock

The Middle East and Ukrainian conflicts are likely to play out with a focused intensity in the cyber arena. Increased instances of intelligence hacking, grid and telecommunications disruptions, and malware attacks may escalate into state-sponsored cyberattacks and possibly full-blown cyber warfare that could affect your firm.

There was a 38% increase in global cyberattacks in 2022 alone, according to Check Point Research. With this in mind, firms should have a heightened awareness, as to whether its cyber liability insurance policy would provide coverage in the event of a cyberattack that arises directly or indirectly as a result of terrorism, war, acts of war or warlike activities.

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