Businesses are going through a period full of difficulties due to COVID-19 and are looking to insurers for adequate financial support. Partner P.J. Miller spoke with Insurance Support World about the benefit of a cyber and data liability policy to help recover a variety of expenses.

P.J. commented “COVID-19 is not covered by business interruption coverage. Exclusions to business interruption coverage specifically include pandemics, viruses (even the flu), and similar circumstances. This is being examined at the legislative level because businesses are turning to their congressperson or senator to question why they have business interruption coverage, but insurers aren’t covering loss related to COVID-19.

Law firms are also getting involved and pressing the issue. Some states have politicians putting bills together in hopes of passing legislation to require private insurance companies to cover business interruption related to COVID-19/viruses, and/or make it a federal requirement that the federal government covers business interruption for COVID-19/viruses. If COVID-19 has resurgence this coming winter and businesses are forced to shut down again, having a “virus protection plan” will allow for coverage to be triggered and send money to those impacted businesses.

A pandemic or virus doesn’t currently have an actuarial rating – what would insurers have to charge to cover the premium – but there is a potential we will see this in the future.

Cyber & Data Liability

In regards to cyber liability and data breaches, the COVID-19 outbreak is creating the perfect storm for these types of attacks to flourish. A cyber and data liability policy can help businesses recover a variety of expenses associated with data breaches, including:

• Notifying customers about a data breach.

• Credit monitoring.

• Restoring personal identities of impacted customers.

• Recovering compromised data.

• Costs to defend claims by state regulators.

• Fines and penalties.

• Repairing damaged computer systems.

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Questions about cyber and data liability insurance coverage? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.