If your company has been impacted by today’s network outage issues, know that insurance may be able to help. Many, but not all, cyber and technology errors and omissions (“Tech E&O”) insurance policies include broad dependent business interruption coverage for losses caused by system failures of a company or vendor on which you rely to operate your business. In broad terms, this coverage pays for lost business income due to a computer system outage of a vendor that provides critical goods or services. Note, however, that there may be limitations on this coverage. Some policies limit this coverage to certain scheduled vendors/providers, while others may only cover losses up to a sublimit – meaning less than full policy limits are available. And in nearly all cases, policies will apply a self-insured retention, deductible, or waiting period (period of hours you must be down before coverage kicks in). Like most questions of coverage, the unique language in your policy will control.

Reprinted courtesy of Andrea DeField, Hunton Andrews Kurth, Geoffrey B. Fehling, Hunton Andrews Kurth and Lorelie S. Masters, Hunton Andrews Kurth

Ms. DeField may be contacted at adefield@HuntonAK.com
Mr. Fehling may be contacted at gfehling@HuntonAK.com
Ms. Masters may be contacted at lmasters@HuntonAK.com