Does Cyber Insurance Cover Lost Revenue?
Sometimes—cyber business-interruption coverage may replace net income and continuing expenses after a covered interruption, but gross sales loss, reputation damage, and stolen IP value may be excluded.
Cyber business-interruption wording may calculate lost net income plus continuing expenses during a covered interruption, rather than reimburse gross sales that did not occur. The Insurance Information Institute describes interruption protection as a possible first-party benefit and separately notes that revenue impacts from intellectual-property theft or reputational harm may not be covered. This makes the cause and calculation important.
Read the definition of business income, the covered interruption trigger, and any exclusion for reputational harm, market loss, or intellectual-property value. Check how the insurer treats saved expenses, extra expense, seasonality, the waiting period, and restoration time. Ask whether the policy covers a decline in sales while systems remain available, or requires an actual interruption of operations. Maintain accounting records to support a claim.
