Business Interruption Coverage Times Three


Adjusters International Disaster Recovery Consulting

Business Interruption Coverage Times Three

Prepare for Overlapping and Contrasting BI Provisions under Property, Equipment Breakdown and Cyber Policies

By Joseph S. Harrington, CPCU

The Verve, a VoxMedia portal devoted to technology, called it the “Internet apocalypse” when, in October 2016, a sophisticated cyber-attack rendered Amazon, Etsy, Netflix, Twitter and other big Internet operations inaccessible for hours to many users.

But that incident turned out to be small-time compared to the “WannaCry” attack that crippled entire computer systems throughout the world in May 2017.


Business interruption (BI) claims have long been both crucial to a company’s recovery and among the most intricate insurance losses to adjust. Until recently, BI protection came mostly under the firm’s commercial property or equipment breakdown policies. However, that is changing with the advent of cyber insurance, which can provide BI coverage for income lost froma covered computer or network disruption.

While this additional dimension of protection might seem to benefit a company overall, the complexities that result when a loss triggers simultaneous BI claims that could fall under more than one type of coverage, including difficulties in calculating the loss settlement, can be very detrimental to the recovery process.

In this issue of Adjusting Today, Joseph S. Harrington, CPCU, discusses such overlapping of coverages, offering insight into the impact of the relative newcomer—cyber insurance. We think you will find his article to be interesting and informative.

Sheila E. Salvatore