In their 2018 Survey of Cyber Insurance and Market Trends,
Advisen reported that, for the first time, cyber-related business
interruption coverage had replaced data breach coverage as the most
sought-after cyber insurance coverage. In this article, as forensic
accountants, we analyse the cyber business interruption wordings in
the insurance market and highlight the weaknesses we have seen in
some of the wordings.
Business Interruption Coverage
Under a typical cyber-related business interruption insurance
policy ("Cyber BI policy"), the insurer will pay the
insured's loss of business income, during the indemnity period
resulting from a cyber event, that is discovered during the period
of insurance. The indemnity period typically begins after a waiting
period.
