ADJUSTERSINTERNATIONAL.COM • (800) 382-2468 • INFO@ADJUSTERSINTERNATIONAL.COM 7 language for applying an exclusion. Regarding first-party property coverage, insureds who suffer ensuing physical damage from a cyber incident (other than by fire or explosion) could be left without coverage if their ISO-based property policy excludes coverage for such losses. Given that, if a cyber policy does not explicitly exclude coverage for physical damage to property, an adjuster will explore whether coverage is available under that policy. Underlying liability On the liability side, an adjuster will look beyond cyber exclusions in liability policies to seek coverage for the underlying liability. GBA Insurance, cited above.4 On the contrary, GBA identifies several “potential exit points” for carriers to avoid professional and management liability claims. Apart from explicit cyber exclusions, these “exit points” include professional services and product defect exclusions. Plus there is broad exclusionary language in provisions addressing terrorism, privacy violations, infringement of intellectual property, and contractual liability. As a broker, GBA advises buyers to negotiate — when possible — for eliminating these exclusions or limiting their scope, particularly by narrowing their “lead-in” language. That is, insureds are advised to avoid extended phrases such as “for, based upon, arising from, in consequence of, or related to” in favor of shorter, more targeted Type of claim (identified by GBA Insurance) Potentially applicable coverage provisions (provided by author) Website accessibility claims (by individuals unable to utilize a website because of a personal disability) • May or may not fall under policy definitions of insured injury or damage • May be subject to exclusions for violations of the Americans with Disabilities Act Breaches of employee privacy • May be subject to cyber exclusions in employment practices policies, or vice versa Media liability • Commonly covered under cyber policies, but only for non-media companies • May be eligible for CGL personal and advertising injury coverage Cyber related investor claims and regulatory actions • May be subject to securities exclusions in cyber policies and cyber exclusions in D&O policies Computer failure/breakdown • Some, but not all, cyber policies cover failures in hardware and systems • May be subject to mechanical breakdown exclusions in property policies • May be covered under equipment breakdown policies Computer and funds transfer fraud • Frauds committed through cyber means commonly covered under cyber policies • Coverage generally available under commercial crime policies Cyber-instigated liability for third-party bodily injury and property damage • May be subject to CGL cyber exclusions • May be covered under contingent bodily injury and property damage coverage now starting to appear in cyber policies
RkJQdWJsaXNoZXIy NjIxNjMz