Companies

Lloyd's: Requirement for exclusions in standalone cyber-attack policies

Image

Source: Lloyd's > Read more of this > here

Lloyd’s has told its syndicates that they must add cyber policy clauses that exclude state-backed cyberattacks linked to both physical and non-physical conflict

Requirement for exclusions in standalone cyber-attack policies

It is important that Lloyd’s can have confidence that syndicates are managing their exposures to liabilities arising from war and state backed cyber-attacks. Robust wordings also provide the parties with clarity of cover, means that risks can be properly priced and reduces the risk of disputes.

We are therefore requiring that all standalone cyber-attack policies falling within risk codes CY and CZ must include, unless agreed by Lloyd’s, a suitable clause excluding liability for losses arising from any state backed cyber-attack in accordance with the requirements set out below. This clause must be in addition to any war exclusion (which can form part of the same clause or be separate to it). At a minimum, the state backed cyber-attack exclusion must:

  1. exclude losses arising from a war (whether declared or not), where the policy does not have a separate war exclusion.

  2. (subject to 3) exclude losses arising from state backed cyber-attacks that
    (a) significantly impair the ability of a state to function or (b) that significantly impair the security capabilities of a state.

  3. be clear as to whether cover excludes computer systems that are located outside any state which is affected in the manner outlined in 2(a) & (b) above, by the state backed cyber-attack.

  4. set out a robust basis by which the parties agree on how any state backed cyber- attack will be attributed to one or more states.

  5. ensure all key terms are clearly defined.

Trending
Share this Post:
Posted by IRL Editor

Advertisement

ad ad

Related articles

The Map Expands - SRS Office Opens in France

Strategic Risk Solutions (“SRS”; “the Company”), the world’s largest independent insurance company manager, today announced their latest expansion in Europe –...

Ryan Specialty Hires Tim Anders as EVP of National Specialty Programs

Ryan Specialty (NYSE: RYAN) is pleased to announce that Tim Anders has joined the Underwriting Managers’ National Specialty Programs (“NSP”) practice as an Executive Vice President. Tim’s charge is to...

ABI’s cross-industry campaign Securing Futures launches at Westminster

Campaign launched at parliamentary reception   ·       Westminster station advertising campaign amplifying role of insurance and long-term savings to run this...

Chubb Appoints Darryl Page Chief Culture Officer

Global Insurance Industry Leader with Deep Roots in Chubb's Culture Returns to the Company  ZURICH, Nov. 9, 2022 /PRNewswire/ -- Chubb Limited (NYSE: CB) today announced Darryl Page has...

Alex Ilgner Promoted to Account Manager at RT Specialty

Hamilton, New Jersey (September 29, 2022) – Alex Ilgner has been promoted to account manager in RT Specialty’s Environmental and Construction Professional Practice (RT ECP). Since joining the company...

Ryan Specialty Hires Enterprise Risk Management Executive, Waleed K. Husain, as Chief Risk Officer

Ryan Specialty Holdings, Inc. (NYSE: RYAN) (“Ryan Specialty”) is pleased to announce that Waleed K. Husain has joined the firm as its first Chief Risk Officer. Waleed specializes in identifying, analyzing...