Business Interruption Coverage Times Three


This raises the possibility that an income loss already settled on the basis of property or equipment breakdown provisions may have to be revisited to reflect losses that may have actually arisen from a previously undetected cyber breach.

As with waiting period deductibles, underwriters will usually try to coordinate property and equipment breakdown restoration periods, plus any extended periods of indemnity.

Generally speaking, equipment breakdown and cyber income restoration periods will start sooner and end sooner than a restoration period under standard business income coverage provided by a property carrier.

Underwriters cannot, however, coordinate the circumstances that determine the length of time it takes to get different components of an operation back in working order. Adjusters will have to deal with that.

Computer/Data-Related Provisions

Table entries are paraphrased summaries and not authoritative.

Actual claims must be adjusted on the basis of specific wording in applicable policies.

Computer/data-related provisions

ISO CP 00 30 Business Income (and Extra Expense) Coverage Form

Base BI and EE coverage does not apply to suspension of operations caused by loss to or corruption of electronic data.

Additional coverage under a $2,500 sublimit for “Interruption of Computer Operations” caused by viruses and coding designed to damage a computer system.

HSB Equipment Breakdown Coverage Form 6671

Will pay reasonable, necessary costs to restore lost data up to a data restoration sublimit.

Summary of provisions in proprietary cyber forms

Focus of coverage.

What can complicate coverage on the front end of an income claim can also complicate it on the back end…