Question 98

Loss of future competitiveness is typically excluded under a cyber risk insurance policy.

Cyber risk insurance policies generally exclude coverage for losses related to future competitiveness, as such losses are considered speculative and not directly tied to a specific insurable event or incident.

A) Loss of future competitiveness

This option is correct because cyber risk insurance policies usually do not cover losses associated with a company's future competitiveness. Such losses are deemed too uncertain and not a direct result of a specific cyber incident, making them ineligible for coverage under typical policy terms.

B) Theft of data resulting in a privacy breach

This option is incorrect as theft of data leading to a privacy breach is often a key coverage area in cyber risk insurance policies. Insurers typically provide coverage for incidents that compromise sensitive data, addressing the financial repercussions of such breaches.

C) Unintentional transmission of a computer virus

This choice is incorrect as well, since many cyber risk insurance policies cover incidents involving the unintentional transmission of computer viruses. This scenario is directly relevant to cyber risks and is generally included under the policies to protect against such occurrences.

D) Unavailable network systems due to security failure

This option is incorrect because policies often cover losses resulting from unavailable network systems due to security failures. Such incidents are considered insurable events that can lead to significant financial loss, making them eligible for coverage.

Conclusion

The correct answer, loss of future competitiveness, is excluded from coverage under cyber risk insurance policies due to its speculative nature. In contrast, the other options represent actual incidents or losses that are typically insurable under these policies, highlighting why they do not fit the criteria for exclusion.