Call Us Today For A Free Quote | 866.940.1101
Professionals Insuring Professionals

Insurance PolicyBusiness interruption insurance coverage is an essential coverage needed by all businesses.  It is not uncommon that the costs of restoring a business’s operations can easily exceed the actual cost of repairing the damage that caused the business interruption.  If the building that your firm resides in has a fire it can take months to repair the building.  Between the time that the loss occurred until operations are fully restored to the original location a firm still needs to operate and likely will incur extra expenses and reduced revenue.  For physical damage covered losses firms look to their business owner’s policy (BOP) for this essential insurance coverage to address loss firm revenue, the expenses of relocating the business, and the additional expenses to operate when your primary facilities are damaged.  This includes having to restore your computer system being out of action because of a physical covered loss. 

But the BOP will not answer for business interruption coverage if your firm suffers a business interruption due to a cyber-attack, data breach, or ransomware. The following is a typical definition under a BOP’s policy regarding your computer systems in the business interruption coverage section:


h.   Electronic Data Processing

(1)  When a Limit of Insurance is shown in the Declarations for Business Personal Property at the described premises, you may extend that insurance to apply to direct physical loss of or damage to "Electronic Data Processing Equipment” and  to  "Electronic Data  Processing  Data  and  Media", caused by or resulting from  a Covered Cause of Loss.


This definition only provides coverage for a physical covered loss.  A Ransomware Attack is not covered. 

Don’t look to your malpractice/errors & omissions insurance to provide business interruption coverage either.  Even if the insurer might pay certain losses that deal with a malpractice claim caused by cyber, the firm will be on its own for business interruption costs caused by cyber.

Case in point is the law firm of Moses Afonso Ryan Ltd that was hit with ransomware that we blogged about last year.  Firm states that they had loss billings of over $700,000.  The firm found out the hard way that they needed a properly endorsed cyber policy.

Purchasing a cyber policy that also covers business interruption expenses for cyber needs to be an essential insurance coverage for every law firm, accounting firm, and title agency.

Share |

No Comments

Post a Comment
Required (Not Displayed)

All comments are moderated and stripped of HTML.
Submission Validation
Change the CAPTCHA codeSpeak the CAPTCHA code
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2013
  • 2011

View Mobile Version
Quick Contact
We love referrals! And thank you even more for your continued business.
Customer Service
Self policy service any time of the day, directly from our website.
Join Our Newsletter
Stay in touch with the latest events, news and offers we have.
From Our Blog From Our Customers
Read More Read More
Facebook Twitter LinkedIn Google Maps
Stay In Touch With Us Helpful Site Links Contact Us
Sign up now to receive new and updates 5075 Cascade Rd. SE, Ste. E
Grand Rapids, MI 49546

Local: 616.940.1101
Toll Free: 866.940.1101
We have the expertise to find you the right coverage at the right price 
Powered by Insurance Website Builder