Does Business Interruption Cover Cyber Attacks?

A cyberattack can halt operations without physical damage to insured property, which may not satisfy a standard business-income trigger. Coverage depends on whether the policy includes electronic data or cyber-related business interruption, what system failure qualifies, and whether the event must result from a security breach or other defined incident. Cyber policies also vary in waiting periods, restoration periods, and dependent-system coverage.

Check the property policy for electronic-data and nonphysical-loss exclusions, then review any cyber policy’s business-interruption insuring agreement. Confirm coverage for your own network, cloud providers, critical vendors, restoration costs, and lost income. Do not infer cyber interruption coverage from a general business-income limit.