What is a War Exclusion?
Insurance policy provision excluding losses caused by acts of war, increasingly contentious for state-sponsored cyber attacks.
War Exclusion
Insurance policy provision excluding losses caused by acts of war, increasingly contentious for state-sponsored cyber attacks.
How it works in practice
An insurer's cyber policy includes a war exclusion clause. When a state-sponsored group launches a destructive wiper attack against companies in a neighbouring country, the insurer denies claims on the grounds that the attack constitutes an act of war. Policyholders dispute this, arguing that a government-backed cyber operation against private companies does not meet the traditional legal definition of armed conflict. The matter goes to court.
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