Cyber Claims - a Guide to Calculating Business Interruption
Written by JS Held
While cyber was incorporated in some general liability policies (GL) of the 1980s, the first cyber standalone policy was written in 1997 through AIG. Though groundbreaking, as it was the first to address cybersecurity, it was a third-party liability policy only. According to Statista, standalone worldwide cyber policy premiums have grown from $2.5B in 2014 to over $7.5B in 2020.
Business Interruption (BI) coverage is now being offered in a high percentage of standalone cyber insurance policies (cyber policies). One of the significant events in cyber insurance in recent years has been the addition of more meaningful business interruption insurance for cyber-related events. It is common to see standalone cyber coverage that either combines first-party business interruption coverage with data breach liability or includes only first-party business interruption. It generally covers partial or complete business interruption following a cyber-attack or technical failure.
