We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss.

Analysis

The form clearly states that an addition is made to the exclusions section of the policy. No coverage is provided for the listed peril, and standard anticoncurrent causation language is provided so that if a cyber incident occurs with a covered peril, there is still no coverage.

Cyber Incident 

1. Unauthorized access to or use of any computer system (including electronic  data). 

2. Malicious code, virus or any other harmful code that is directed at, enacted upon or introduced into any computer system (including electronic data) and is designed to access, alter, corrupt, damage, delete, destroy, disrupt, encrypt, exploit, use or prevent or restrict access to or the use of any part of any computer system (including electronic data) or otherwise disrupt its normal functioning or operation. 

3. Denial of service attack which disrupts, prevents or restricts access to or use of any computer system or otherwise disrupts its normal functioning or operation.

Analysis

A cyber incident is defined as any of three components, including unauthorized access to or use of a computer system; malicious code or harmful code directed at or introduced into a computer system and designed to affect the ability to access or use parts of the system; and a denial of service attack that prevents or restricts access to the computer and affects normal functioning. Any of these three types of attacks that are directed at or enacted upon or introduced into a computer system that accesses, alters, corrupts, damages, deletes, destroys, disrupts, encrypts, exploits, uses or prevents or restricts access, is considered a cyber incident.

B. Exceptions And Limitations 

FIRE OR EXPLOSION 

If a cyber incident as described in Paragraphs A.1. through A.3. of this endorsement results in fire or explosion, we will pay for the loss or damage caused by that fire or explosion. 

C. Vandalism 

The following is added to Vandalism, if Vandalism Coverage is not otherwise excluded under the Causes Of Loss Form – Farm Property, Mobile Agricultural Machinery And Equipment Coverage Form or Livestock Coverage Form and if applicable to the premises described in the Declarations: Vandalism does not include a cyber incident as described in Paragraph A.

Analysis

An exception is made for any damage by fire or explosion, if the fire or explosion is caused by a cyber incident. If the unauthorized access, malicious programming or denial of service attack somehow results in a fire or explosion on premises, then coverage still applies.

A clarification is made regarding vandalism. If vandalism is not excluded under the form the cyber incident exclusion is attached to, then vandalism does not include a cyber incident. Cyber incidents and vandalism are two separate things, and a cyber incident cannot be considered vandalism in order for it to be covered under the vandalism peril.

Includes copyrighted material of Insurance Services Office, Inc., with its permission.