The terrorism reinsurer, Pool Re, has announced that from April next year, it will include as standard cover for material damage and business interruption caused by acts of terrorism through a cyber attack to all policyholders purchasing terrorism cover through a Pool Re Member. The business interruption element will cover loss arising from events at the policyholder’s premises, but will not cover intangible assets such as money and data which can be effectively covered by the cyber insurance market.
Prior to putting in place this cover, Pool Re commissioned a research study into the nature of the cyber terrorism threat from the Centre for Risk Studies at the University of Cambridge Judge Business School. Pool Re’s Chief Executive, Julian Enoizi commented “The threat from a cyber-attack is evident and businesses have become increasingly concerned about the extensive repercussions these types of attacks could have on them. This was a clear gap in our coverage which left businesses potentially exposed.”
This development is indicative of the growing awareness within businesses that the potential repercussions of a cyber attack extend much further than data breach and of their increasing concern to extend the protection available to them for this type of loss.