In April 2015 Business Insurance quoted Gabi Siboni, director of cyber security program at Israel’s Institute for National Studies as saying that hackers are targeting electric and nuclear power plants around the world.

This comes on top of news in January 2015 that German steel plant was on fire due to hacking attack.

Much of the demand for cyber insurance has been fuelled by the concern that organisations could be sued by customers as a result of a breach of network security – a risk covered under cyber policies usually.

It is however, possible that a cyber attack causes bodily injury or property damage e.g. in the case of the German steel mill.

Cyber policies do not usually cover claims for injury or damage but traditional policies which do such as property damage/business interruption and public policies often contain cyber exclusions.

This has given rise to the development of Cyber Gap insurance designed to cover this gap with insurers such as Aegis and Brit Insurance offering policies that cater for this gap.

All brokers need to be comfortably that their clients are protected against cyber risks.  You can click on this link to read the Marsh UK Cyber Security they wrote on behalf of HMG on The Role of Insurance in Managing and Mitigating Risk or email me for details of cyber workshops.

Posted by Neil Park January 17, 2016