Lloyd’s of London Insurance, simply known as Lloyd’s Insurance, has released a media update that it will no longer cover losses that were incurred because of cyber wars among nations. The company was also specific in its statement that its latest decision will also not cover damages incurred because of operational disruption caused by attacks on critical infrastructure.
Patrick Davidson, the company’s director, issued a press statement that his company’s new policy titled “Cyber War and Cyber Operation Exclusion Clauses” was included after making a detailed survey of pulling back cyber coverage in certain situations.
In a recent study made by Gartner, Lloyd’s emerged as a top company that increased its coverage premiums by 50% in 2021, all because of a global impact of ransomware attacks on corporate and government networks.
Therefore, any company serving energy, water, technology or manufacturing sector, thinking to keep its IT assets safe through a cyber insurance coverage, should think twice before taking a coverage policy. They should either find out what areas does the coverage policy includes and excludes and must write it on paper what all kinds of cyber attacks are covered under its about-to-be taken cyber insurance policy.
So, attacks such as SolarWinds, issues that took place on Microsoft Exchange Servers attack, JBS Meat and Colonial Pipeline will not be receiving a Lloyd’s insurance cover to losses incurred through state funded attacks from now on. And the new rule applies to all companies operating in France, Japan, Russia, China, United States and United Kingdom.
Note- There is a high probability that other insurance companies involved in the business of cyber insurance coverage across the globe are likely to follow the same path.
