Lloyd’s of London may no longer extend insurance cover to companies affected by acts of war, and new clauses drafted for providers of so-called “cyber” insurance are raising the spectre of organisations caught in tit-for-tat nation state-backed attacks being left high and dry.
The insurer’s “Cyber War and Cyber Operation Exclusion Clauses”, published late last week, include an alarming line suggesting policies should not cover “retaliatory cyber operations between any specified states” or cyber attacks that have “a major detrimental impact on… the functioning of a state.”
“The insurer shall have the burden of proving that this exclusion applies,” warn the exclusion policies published by the Lloyd’s Market Association.