Does Cyber Insurance Cover System Failure?

Some policies include a system-failure trigger; others focus on security incidents or define covered failures narrowly. Chubb describes interruption to insured systems in its product, but that company-specific summary does not establish that any outage is insured. A vendor system may also be treated under a separate dependent-business-interruption section.

Read the system-failure and security-event definitions together. Check exclusions for hardware breakdown, maintenance, utility interruption, prior known defects, or failure to patch, and see whether the policy requires an external cause. Note the waiting period, dependent-system wording, sublimit, and proof of lost income. Ask the insurer how the exact type of failure you depend on would be classified before choosing a limit.