6 ADJUSTINGTODAY.COM insuring agreements. If the claim is subject to a CGL cyber exclusion, the insured could still lodge the claim under the cyber media liability coverage. Before doing so, however, an adjuster would still have to determine whether invoking the media coverage would allow for the maximum possible recovery under the cyber policy or deplete the per-loss and aggregate limits in a way detrimental to the insured. Coverage gaps The example above describes overlapping coverage, which insurers consider to be a problem to be solved by segmenting cyber risk from other exposures. Insureds and their adjusters are more concerned about coverage gaps, especially in cases where there are two policies. Each policy might be expected to cover a loss, combining to eliminate coverage by virtue of complementary exclusions: • Cyber exclusions in property and liability policies, and • Cyber policy exclusions for physical damage and/or general, professional, or management liability. If a cyber event contributed to a bodily injury (e.g., by interfering with machinery) the policyholder could be without coverage. For example, if the CGL policy has a cyber exclusion and the cyber policy has an exclusion for bodily injury claims. Both of those types of exclusions are still quite common, even as some cyber insurers have begun adding contingent bodily injury and property damage coverage. There’s even greater potential exposure in professional and management liability. “Some companies still operate under an assumption that coverage [for cyber events] will be afforded under the professional liability or directors & officers insurance policies,” writes
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