What are the exclusions in a Cyber Insurance Policy?

 

What does a Cyber Insurance Policy not cover?

KNOWN MATTERS

Any Single Event or Circumstance first Discovered or Known before the inception of the Policy Period is not covered under a Cyber Insurance Policy in India.

DELIBERATE OR RECKLESS CONDUCT

A Cyber Insurance Policy will not pay any loss arising out of any dishonest, fraudulent, criminal, or reckless act or omission committed by or with the knowledge of any person who was a Responsible Person of the Insured at the time of such act or omission.

CONTRIBUTED LOSS

The Cyber Security Insurance Policy will not pay for loss arising out of the Insured failing in whole or in part to implement any reasonable recommendation made by the Legal Response Team, the PR Response Team or the IT Response Team whether in response to a Cyber Event or recommended by underwriters or the Cyber Insurance Company).

SYSTEM ENHANCEMENT

A Cyber Security Insurance Policy will not pay for any enhancement of the Insured’s Systems to a level beyond the state existing immediately prior to the Cyberattack, except to the extent that the relevant hardware or software is no longer available.

DATA PROTECTION COMPLIANCE GAPS

A Cyber Security Insurance Policy in India will not pay for any measures required to ensure compliance with mandatory rules applying to the collection, storage, processing or protection of Protected Data, except to the extent covered under Notification Costs or Monitoring Costs.

CONTRACTUAL LIABILITY

A Cyber Risk Insurance Policy will not pay for any liability contractually assumed by the Insured, whether directly or by waiver or limitation of rights against third parties, that exceeds the ultimate liability (taking into account recourse actions) that would attach in the absence of such contractual assumption, except to the extent of covered PCI Penalties.

INSOLVENCY

A Cyber Insurance Policy does not cover insolvency, bankruptcy, or liquidation of an Insured or any Service Provider operating and administering Outsourced Systems.

GOVERNMENT OR REGULATOR ACTION

A Cyber Insurance Policy does not cover any claim arising out of any act or order of any government or regulatory body disrupting the operation of or access to the Insured’s Systems or Outsourced Systems However this Exclusion does not apply to Cyber Attacks committed by any such body or agency against the Insured’s Systems.

WAR AND TERRORISM

Cyber Insurance in India does not cover any claim arising out of Acts of War, invasion, act of foreign enemy, hostile operations, Terrorism etc.