Cyber product enhancements: System damage and business interruption

Cyber events can impact a business long after its systems are back online. That’s why we’ve extended our standard indemnity period from 12 to 18 months, going well beyond the 3-6 month indemnity periods typically offered by the cyber market. Whether an outage causes a customer to cancel a contract or revenue takes longer to recover, businesses now benefit from an additional six months of financial protection to help them get back to where they would have been before the outage.

We now provide affirmative cover for temporary hardware needed to help recover digital systems after a cyber event. Plus, we’ve expanded our definition of computer systems to include operational technology (OT), meaning we’ll cover the cost of replacing OT that’s been rendered unusable by a cyber event where it is more cost-effective to do so—an exposure that many insurers look to exclude.

Everyone makes mistakes, but when a simple slip-up— like deleting a critical database or botching a system upgrade—leads to costly downtime, businesses need protection. This coverage ensures that unintentional human errors don’t leave companies exposed. If human error causes the outage, you’re covered. This compliments the non-malicious system failure trigger also included in our CPR policy.

We’re clarifying how our waiting period operates by confirming that it acts as a time franchise. The time franchise model offers a fairer, more responsive approach to business interruption claims. That’s because, unlike a time retention, a time franchise covers any losses incurred before the set timeframe elapses.

Previously known as additional extra expense or AICOW, this coverage helps businesses mitigate a business interruption loss without the burden of an economic test applying to the additional costs incurred. This bolder, more intuitive name highlights its value, with clear wording to confirm that no economic test applies.

Whether a business proactively shuts down systems to prevent greater losses or is forced to do so by a regulator in response to a cyber event, costs and the income loss incurred can quickly mount up. Our updated cyber wording ensures businesses are covered in both scenarios, providing financial protection when operations come to a halt.

A cyber event shouldn’t cost businesses their next big opportunity. Whether system downtime prevents them from submitting a bid or a cyber incident results in the bid being rejected, our updated wording ensures they’re covered for the income loss that follows.

When a cyber event disrupts operations, businesses may not be able to afford waiting for a business interruption loss to be adjusted before being reimbursed—they may need critical support right away. That’s why our updated wording includes interim payments, ensuring policyholders can receive funds quickly when they need them most—offering financial relief and peace of mind.