Cyber Insurance War Exclusions

Recently we have seen the Russia-Ukraine conflict and many employers and CEOs, especially from Russia and Ukraine have cyber warfare in their minds and how can they save themselves from such the upcoming cyber attacks. USA officials have warned private business owners to be aware of Russian hackers.

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War Exclusions for Cyber Insurance

Insurance companies rarely provide coverage for the loss or damages caused during a war. It is decided between the insurer and the buyer while purchasing the cyber insurance policy. When an event that happened online and affected so many people that it would bankrupt the insurer.

A cyber insurance policy does not provide coverage for the loss or damage caused directly or indirectly from the following event, whether insured under the policy or not.

Warlike actions in any time of war or peace caused by any:

  • Sovereign Power or Government
  • Military, naval or air force
  • Authority or agent of any of the above-mentioned parties.

Protect Business From Cyber Attacks

Whether cyber insurance provides coverage for the loss caused during an act of war or not, it depends upon the language used in the policy. It is suggested to look at the language that separates cyber ward and cyber terrorism.

Cyber terrorism is the preplanned utilization of disruptive acts toward computer systems to be able to damage or intimidate someone. Cyber terrorism can be an end result of looking to attain social, ideological, religious, or political objectives. However, cyber terrorism no longer consists of acts that are associated with or in a guide of navy movement or different war-like operations.

On the alternative hand, cyber wars are cyber assaults that get up from or are associated with warfare, invasion, hostilities, acts of overseas enemies, or different warlike operations. Such acts of cyber wars may consist of a strike, lock-out, riot, civil warfare, revolution, rebellion, or insurrection.

The difference between cyber terrorism and cyber war is important, due to the fact many rules will cowl acts that fall below cyber terrorism except those that fall below cyber attack. However, there are nevertheless grey regions in cyber coverage exclusions for cyber war.

For example, if an act towards some other country in a cyber battle leaks out to different nations and companies, the damages that it reasons to the one's companies may also or might not be blanketed below conventional cyber coverage rules.

There isn't any clear-cut solution as to what happens in that scenario, which means that litigation can be the handiest alternative in such extraneous circumstances. Businesses that have already got cyber coverage however need to defend themselves even during the act of a cyber attack and should purchase a separate coverage policy.

What Does Act of War Exclusion Mean?

As a dealer, your clients expect you to tell about the cyber risks accurately. If you do an analysis and advise your customer concerning a cyber coverage make sure that the evaluation of the conflict and terrorist act exclusions alongside your customers so that they apprehend however this will follow to a cyber occasion.

In the event of a cyber assault that falls below a conflict or terrorism exclusion, your customers are often left without the assistance of the cyber coverage they thought they had. If such cyber assault causes severe loss to the business, a business owner ought to sue their dealer for not advising them correctly.

Therefore, insurance providers need to be more cautious than ever while advising a client regarding cyber coverage. Insured want to be told about the effect before the cyber attack takes place and they want to know whether the insurance coverage will or will not be provided after a cyber attack caused during an act of war or terrorism. If coverage will not cover those cyberattacks, the company can be left without help when they need it the most.

Additionally, for your well-known vetting procedure for a cyber insurance policy, transfer a step reviewing the conflict and/or terrorist act exclusions. Most of the standalone cyber insurance plans will not provide coverage for the act of war or terrorism however most good standalone insurance policies will have a carve back during these events. Specifically “Cyber Terrorism”, as the insurance company will provide coverage if the act was not directly performed by the government or by directed by the government when they are involved in an active war.

This drawback is even further robust to control as often it's hard to indicate if a government is behind the attack and they will obviously deny taking the responsibility of the attack. For agents, revealing cyber conflict and terrorist act exclusions for your client is an important step in advising your consumer additionally to defend your personal E&O.

Conclusion

It is advised to business owners learn about a policy in detail before purchasing it. Also, as mentioned above, learn about the difference between an act of war and an act of terrorism and purchase the cyber insurance policy that provides coverage that suits your requirement.

Written By: PolicyBazaar - Updated: 18 January 2023

Cyber insurance news

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Cyber Fraudster Target Customer under Disguise of Insurance Officer

09 Jan 2023

Cyber fraudsters are targeting customers under the disguise of not a bank official but an insurance company official. In one such event, a 67 year old citizen from Thottakattukara, Kochi, lost Rs 1 lakh.
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He was approached by a woman name Radhika Jain who claimed to be from an insurance company. She promised the victim to make the financial settlement for the raised claim if he pays Rs 1 lakh to renew the policy. When the victim filed the complaint, Rural Cyber Police, Ernakulam, launched the investigation. The incident took place on October 29 and the fraudster claimed to be an ICICI Prudential Insurance official. The fraudster fooled the elderly person by telling them that his insurance policy has expired and the settlement cannot be made disbursement of the insurance amount. As per the Police officer, “The fraudster suggested the victim to pay Rs 1 Lakh to renew the insurance policy. If the policyholder pays the amount then he will be considered as Senior citizen and the disbursement will be done. In order to make it look genuine, the caller sent ICICI Prudential life insurance letterhead through Whatsapp.” “The fraudster promised the complainant that within 45 days the settlement of Rs 2.45 lakh will be done. The victim transferred the amount to the fraudster’s Canara bank account and once the payment was made the fraudster sent some fake documents. However, the promised settlement of Rs 2.45 lakh was not made even after 45 days.” A police officer said. After cross checking the details of transaction, the police found out that the accused was from Aligarh. Police is also probing as to how the accused got the information related to the insurance policy of the victim.
Sensitive Data of 6 Lakh Indians Stolen by Hackers and Sold at Rs. 490 each

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Out of 5 million people globally, 6 lakhs Indians have had their sensitive data stolen and sold on the bot market making India, the worst affected country.
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The average cost of the digital identity of one person was Rs.490, revealed NordVPN, the world's largest VPN service provider. The stolen data include user logins, screenshots, digital fingerprints, cookies, and other sensitive information. All these data are sold in packets in the bot markets, which refer to places where hackers sell stolen data from victims' devices with bot malware. The study majorly looked into three-bot markets the Genesis market, 2Easy and the Russian Market. Out of 26.6 million stolen logins found on the bot markets, 7,20,000 were Google logins, 6,47,000 were Facebook and 6,54,000 were Microsoft logins. Moreover, 667 million cookies, 5,38,000 auto-fill forms, 81,000 digital fingerprints, multiple device screenshots, and webcam snapshots were also found by the researchers. The bot markets are distinct from other dark markets as bot markets are able to get huge amounts of information related to one person in one place. The hackers also guarantee that once the bot is sold, the data of the victim will be updated till their device is affected by that bot, stated Marijus Briedis, chief technology officer at NordVPN. Security researchers also said that not all bots come with a good purpose, many can be malicious as well. These bots operate in multiple fields like customer service, SEO and entertainment and are becoming increasingly common recently. Vidar, RedLine, Taurus, AZORult and Racoon are some of the most popular malware used to collect and steal information out of which RedLine is the most common, stated the report.
AIIMS Cyber Breach: Attackers Demand Rs 200 Crore in Crypto

06 Dec 2022

All India Institute of Medical Sciences, New Delhi, India reported a cyberattack on November 23, 2022. Later, the statement released by AIIMS said that e-hospital system
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has gone down and it has affected the digital hospital services, e-billing, smart lab, appointment system and report generation. AIIMS currently manages around 2,500 beds. It is said that the data of around 2 to 3 Crore patients might have been compromised. After the incident, AIIMS shifted to manual operations to cater the patients. Also, All India Institute of Medical Sciences sought National Informatics Centre (NIC) and I-CERT to restore the digital services. The incident has been reported to Delhi Police whereas CBI and NIA have joined the investigation. AIIMS issued a new Standard operation procedure where the admission, discharge and transfer of patients will be done manually.  As per a source told Press Trust of India, “Hackers have demanded a ransom of Rs 200 Crore in crypto currency on November 28, 2022”. Later, Intelligence Fusion & Strategic Operations unit have registered the case under cyber terrorism and extortion on November 25.  Meanwhile, National Information Centre e-hospital database and application servers restored the data for e-hospital. Also, the team of NIC is cleaning and scanning infections from other e-hospital servers that are located at AIIMS hospital. These servers are required to deliver the service of the hospital. Also, four physical servers have been arranged to restore the e-hospital services and have been scanned and prepared for the applications and database. As per the source, “Sanitisation of AIIMS network is in progress. Antivirus has been installed on 1200 out of 5000 computers and 20 out of 50 servers have been scanned. This activity is going on 24*7”.
Cyber Criminals Sending Phishing Links to Twitter Users

06 Dec 2022

Cyber criminals are targeting twitter Verified Twitter user by sending them phishing links. The cyber criminals send the phishing link to steal their phone number
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and other details registered with their account. This new phishing link attack is tricking users to enter their username, password and contact details such as phone number on an unverified website that is claimed to be a help site by Twitter.
Cert-In Issues Warning to Iphone and Ipad users

06 Dec 2022

Cert-In (Indian Computer Emergency Response Team) reported several vulnerabilities in AppleIOS and iPadOS that allows a remote tracker to gain access to private data,
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run random codes or cause service denial on targeted user’s device. Cert-In states that the vulnerability can be exploited and the iphone and ipad users should update their software properly.

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