{"id":33547,"date":"2025-10-28T13:13:40","date_gmt":"2025-10-28T18:13:40","guid":{"rendered":"https:\/\/www.bbrown.com\/?post_type=insight&p=33547"},"modified":"2025-10-28T13:13:40","modified_gmt":"2025-10-28T18:13:40","slug":"cyber-property-insurance","status":"publish","type":"insight","link":"https:\/\/www.bbrown.com\/us\/insight\/cyber-property-insurance\/","title":{"rendered":"Cyber Property Insurance"},"content":{"rendered":"

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Property & Casualty<\/p>\n

\n Cyber Property Insurance\n <\/h1>\n\t\n <\/div>\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\t\n[\/vc_column][\/vc_row][vc_row][vc_column width=”2\/3″]\n
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\n Cyber Property Insurance\n <\/h1>\n\t\n <\/div>[vc_column_text css=””]Historically, cyberattacks have targeted data and information systems, but the threat landscape is shifting. Cyber incidents are increasingly impacting critical infrastructure, machinery and equipment, leading to physical damage such as fires, explosions and machinery breakdowns.<\/p>\n

These events can compromise:<\/strong><\/p>\n

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  1. Process controls<\/strong> in industrial environments<\/li>\n
  2. Communication systems<\/strong> in water treatment facilities and pipeline operations<\/li>\n
  3. Safety functions<\/strong> in building automation<\/li>\n
  4. Navigation systems<\/strong> in autonomous vehicles<\/li>\n<\/ol>\n

    The consequences range from operational disruptions to serious safety risks.<\/strong><\/p>\n

    Coverage Gaps in Traditional Insurance<\/h3>\n

    Cyber insurance policies typically exclude physical and property damage, while property insurers have introduced cyber exclusions to limit liability for such events. This evolving risk profile is creating coverage gaps challenging traditional insurance frameworks.<\/p>\n

    The Rise of Cyber Incidents with Physical Consequences1<\/sup><\/h3>\n

    \"\"<\/p>\n

    The 2017 NotPetya and WannaCry ransomware attacks triggered lawsuits against property insurers, who argued these losses fell outside traditional property coverage. In response, insurers conducted portfolio audits and introduced diverse cyber exclusions across property and other lines.<\/p>\n

    Broad Cyber Exclusions<\/h3>\n

    Lloyd\u2019s led the market by implementing broad exclusions in property and casualty policies.\u00b2 These often include:<\/p>\n