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.