Can Terrorism Affect Business Insurance in Hawley PA?

by | Jan 29, 2016 | Business Insurance

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The topic of terrorism is taboo in more ways than one. Americans just want to avoid the topic entirely. But, it manages to rear its ugly head in discussion circles, and it has managed to crop up in an official capacity with business insurance coverage.

Data breaches are concerningly common. There are now reports that suggest that data breaches derive from terrorists who are trying to break down the infrastructure of the United States. These terrorists are not the stereotypical terrorists expanded upon in the media. So data breach Business Insurance in Hawley PA comes into play in the act of a data breach. But, there is an exclusion that is being debated in the court of law.

It is currently possible for a policyholder to not pay for damages incurred from a data breach if they found that the company is not properly protecting the data. They can potentially fight it. Thankfully, providers such as website are putting agreements that state that they cover data breaches far more liberally.

Regardless, the clause and exclusion are being cited to avoid payment in a data breach scenario. But, the exclusion is not exclusive to a lack of protection. Policyholders can also refuse payout if the data breach was caused by an act of terrorism. In other words, if someone was leaking and stealing data with the sole intention of causing chaos, it can cause major issues for insurance coverage.

It isn’t necessarily a fair exclusion. It is one causing a lot of debate. But, how common is acts of terrorism in regards to data breaching? The word is not out on whether the famous Sony data leak in 2014 (and 2015) was an act of terrorism. There really is not enough information available to substantiate a strong argument against the exclusion. Importantly, some resources are ignoring it entirely because it is considered too unlikely. They also do not want to be feared into not caring for clients.

The debate continues on. But, terrorism has made an impact, however small, all the way with Business Insurance in Hawley PA. Contact the team to receive a free consultation, and to discuss coverage options.

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