Digital risks are now commonly excluded from standard policies such as business interruption, workers' compensation, property and liability, so businesses need to ensure they are covered, warns eRisk manager mi2g.
They say companies are increasingly having to buy specialist digital risk cover because of these exclusions.
Last month, reinsurance companies worldwide excluded data and digital liabilities from cover. Also, corporate insurers have excluded data risks from policies to ensure they are not hit by huge losses.
Group Underwriting and Claims manager at Royal & SunAlliance David Ovenden said: "Many insurers would argue that they never intended to provide cyber cover and that the exclusionary language is purely to clarify the original intent."
Policy wordings have also been tightened after stricter UK legislation coming into force against terrorism. Hackers who penetrate computer systems are now considered terrorists if motivated by political or ideological belief. This is another potential pitfall for companies as terrorism cover is also usually excluded.
