Policyholders have options when it comes to war exclusions in cyber insurance policies, a focus area for insurers following recent cyberattacks.

Key Points:

..Insurers have asserted that war exclusions may preclude losses arising from cybersecurity incidents outside the United States that result in a major detrimental impact to operations in the United States.

..Certain London Market insurers have promulgated recent guidance and revised model war exclusion clauses that they contend narrow coverage, which will be required in their cyber policies moving forward.

..Policyholders may be able to negotiate the terms of the war exclusion, place coverage with cyber insurers that are not modifying the language of the standard war exclusion, or find alternative insurance products with more favorable terms.

Please see full Alert below for more information.