Product Update

Cyber Incident Exclusion Endorsements and Status of Business Income COVID-19 Litigation in Commercial Property Insurance


This release to Commercial Property Insurance addresses the February 2021 cyber incident exclusion endorsements for use with the Insurance Services Office, Inc. (ISO), businessowners policy forms. It also provides an overview and commentary on the current status of the litigation over coverage for business income loss due to the coronavirus.

Beginning in February 2021 in a majority of jurisdictions, ISO businessowners program rules will require the attachment of a cyber incident exclusion endorsement to all policies. There are two options: either the Cyber Incident Exclusion (BP 15 60) endorsement or the Cyber Incident Exclusion with Ensuing Cause(s) of Loss Exceptions (BP 15 61) endorsement.

  • The Cyber Incident Exclusion (BP 15 60) endorsement contains an exception that preserves coverage for fire or explosion loss that results from a cyber incident.
  • The Cyber Incident Exclusion with Ensuing Cause(s) of Loss Exceptions (BP 15 61) endorsement contains the same exception preserving coverage for fire or explosion loss and also preserves coverage for ensuing loss from other causes, subject to the limits of insurance shown in the endorsement schedule.
Since the beginning of the pandemic in the spring of this year, there has been a tremendous amount of legal activity surrounding the disputes between policyholders and insurers over coverage for business income loss due to the coronavirus. This release provides an overview and commentary on how things stand now, in "Are Policyholders Really Winning COVID-19 Cases?" by IRMI Research Analyst Veronica Bates, J.D.