Does Cyber Insurance Cover Business Interruption?

Cyber business-interruption coverage is intended to address certain financial effects when a covered event prevents normal operations. The Insurance Information Institute lists business interruption among possible first-party cyber protections, and Chubb describes lost net profits and continuing expenses after interruption of insured systems. Coverage can depend on whether the cause is a covered network event, a defined system failure, or an interruption at a dependent provider.

Compare the policy’s trigger with ordinary property business-income coverage, which may require physical damage. Check the waiting period, restoration period, income calculation, continuing-expense definition, dependent-system clause, and sublimit. Determine whether a widespread outage or utility failure is excluded or subject to a special endorsement. Document the interruption and ask the insurer what records it requires to calculate the covered loss.