With the Ukraine intensifying and potentially spreading, in some cases disrupting the supply chain and in other instances causing broader economic harms, it is fair to question whether insurance policies’ war exclusions will become more relevant as policyholders seek to recover associated losses. Additionally, the recent hostilities have prompted the U.S. government to warn companies to guard against cyberattacks, at least some of which are expected to be state sponsored. The potential effects on policyholders may take varying forms, potentially implicating their business interruption, contingent business interruption, cyber, shipping and cargo, and political risk insurance coverages. Other coverages could also be implicated.

Insurance policies typically contain some form of war exclusion, which generally bar coverage for damages caused by “war,” “warlike,” or “hostile” actions. But how broad are these exclusions? For example, is a state sponsored cyberattack on businesses or utilities in another country properly characterized as “cyber war” to which an exclusion should apply? Long story short, how courts interpret the exclusion will be critical to the ability of policyholders to recover insurance proceeds.

Speakers:
Douglas R. Richmond, Managing Director of Aon
Lorelie S. Masters, Partner, Hunton Andrews Kurth LLP

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