IUA Cyber Loss Exclusions Clauses

Question 1

IUA 09-081 Cyber Loss Absolute Exclusion Clause

Answer 1

1.Notwithstanding any provision to the contrary within this contract, this contract excludes any Cyber Loss.

2. Cyber Loss means any loss, damage, liability, expense, fines or penalties or any other amount directly or indirectly caused by:
3. 1 the use or operation of any Computer System or Computer Network;
4. 2 the reduction in or loss of ability to use or operate any Computer System, Computer Network or Data;
5. 3 access to, processing, transmission, storage or use of any Data;
6. 4 inability to access, process, transmit, store or use any Data;
7. 5 any threat of or any hoax relating to 2.1 to 2.4 above;
8. 6 any error or omission or accident in respect of any Computer System, Computer Network or Data.
9. Computer System means any computer, hardware, software, application, process, code, programme, information technology, communications system or electronic device owned or operated by the Insured or any other party. This includes any similar system and any associated input, output or data storage device or system, networking equipment or back up facility.
10. Computer Network means a group of Computer Systems and other electronic devices or network facilities connected via a form of communications technology, including the internet, intranet and virtual private networks (VPN), allowing the networked computing devices to exchange Data.
11. Data means information used, accessed, processed, transmitted or stored by a Computer System.
12. When this clause forms part of a reinsurance contract, Insured shall be amended to read Original Insured.

This wording was developed to provide market participants with a tool to exclude, in the broadest possible manner, any loss, whether malicious or otherwise, arising out of the use of (or inability to use) a Computer System, Computer Network or Data, each of which are specifically defined within the clause. Additionally, the clause would remove liability arising from losses stemming from the hoax of such and any error, omission or accident in respect of a Computer System, Computer Network or Data.

Question 2

IUA 09-082 Cyber Loss Limited Exclusion Clause:

Answer 2

1. Notwithstanding any provision to the contrary within this contract, this contract excludes any Cyber Loss.
2. Cyber Loss means any loss, damage, liability, expense, fines or penalties or any other amount directly caused by:
3. 1 the use or operation of any Computer System or Computer Network;
4. 2 the reduction in or loss of ability to use or operate any Computer System, Computer Network or Data;
5. 3 access to, processing, transmission, storage or use of any Data;
6. 4 inability to access, process, transmit, store or use any Data;
7. 5 any threat of or any hoax relating to 2.1 to 2.4 above;
8. 6 any error or omission or accident in respect of any Computer System, Computer Network or Data.
9. Computer System means any computer, hardware, software, application, process, code, programme, information technology, communications system or electronic device owned or operated by the Insured or any other party. This includes any similar system and any associated input, output or data storage device or system, networking equipment or back up facility.
10. Computer Network means a group of Computer Systems and other electronic devices or network facilities connected via a form of communications technology, including the internet, intranet and virtual private networks (VPN), allowing the networked computing devices to exchange Data.
11. Data means information used, accessed, processed, transmitted or stored by a Computer System.
12. When this clause forms part of a reinsurance contract, Insured shall be amended to read Original Insured.

This clause differs to IUA 09-081 in that Paragraph 2 refers to ‘Cyber Loss… directly caused by’, rather than ‘directly or indirectly caused by’, which ties the proximate cause within the wording to a cyber event.