CYBER CLAUSE (CASUALTY TREATY) No. 9 – TRANSACTIONAL LIABILITY

 

 

1                Notwithstanding any provision to the contrary within this Reinsurance Agreement or any endorsement thereto this Reinsurance Agreement excludes any CYBER LOSS regardless of any other cause or event contributing concurrently or in any other sequence thereto, unless subject to the provisions of paragraph 2.

2                Subject to the other terms, conditions and exclusions contained in this Reinsurance Agreement, this Reinsurance Agreement will cover losses (including defence costs to the extent otherwise covered under this Reinsurance Agreement) arising from legal liability of the Reinsured caused by or arising out of a CYBER ACT or a CYBER INCIDENT which result in a breach of a representation, warranty or condition covered under this Reinsurance Agreement.

3                This endorsement is applicable to the following classes of business:

 

a.              Transactional Liability;

b.              Warranty & Indemnity;

c.              Tax Liability;

d.              Tax Credit;

e.              Contingency Liability.

 

4                Other than where coverage is provided in paragraph 2, any loss, damage, liability, claim, cost, expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting from, arising out of or in connection with any loss of use, reduction in functionality, repair, replacement, restoration or reproduction of any DATA, including any amount pertaining to the value of such DATA shall not be recoverable hereunder, nor be considered  as physical loss or damage for the purposes of this clause or any other part of this  Reinsurance Agreement.

5                Any amounts recoverable from any other form of insurance or reinsurance, whether specific, general or which may overlap including deductibles, aggregate deductibles or self-insured retention which protects the Reinsured in respect of any CYBER LOSS (hereinafter “Other Recoveries”) shall inure to the benefit of the Reinsurers in all cases and this Reinsurance Agreement shall not respond until all Other Recoveries are exhausted. The liability of Reinsurers’ in respect of loss or losses covered hereunder shall not be increased by any reason of the inability of the Reinsured to collect any amounts from Other Recoveries.

Definitions

 

6                CYBER LOSS means any loss, damage, liability, claim, cost or expense of whatsoever nature directly or indirectly caused by, contributed to by, resulting from, arising out of or in connection with any CYBER ACT or CYBER INCIDENT including, but not limited to, any action taken in controlling, preventing, suppressing or remediating any CYBER ACT or CYBER INCIDENT.

7                CYBER ACT means an unauthorised, malicious or criminal act or series of related unauthorised, malicious or criminal acts, regardless of time and place, or the threat or hoax thereof involving access to, processing of, use of or operation of any COMPUTER SYSTEM.

8                CYBER INCIDENT means:

 

a.              any error or omission or series of related errors or omissions involving access to, processing of, use of or operation of any COMPUTER SYSTEM; or

b.              any partial or total unavailability or failure or series of related partial or total unavailability or failures to access, process, use or operate any COMPUTER SYSTEM.

9                COMPUTER SYSTEM means any computer, hardware, software, communications system, electronic device (including, but not limited to, smart phone, laptop, tablet, wearable device), server, cloud or microcontroller including any similar system or any configuration of the aforementioned and including any associated input, output, data storage device, networking equipment or back up facility.

10            DATA means information, facts, concepts, code or any other information of any kind that is recorded or transmitted in a form to be used, accessed, processed, transmitted or stored by a COMPUTER SYSTEM.

 

 

LMA 5459A

1 June 2021