Circular: ITIC 2021 Rules
ITIC Rules have provided a consistent policy wording that is well known to members and their insurance brokers. The 2021 edition of the Rules does not represent a significant departure from the cover in the 2017 Rules. However, in line with market practice ITIC’s reinsurers have required additional exclusions in relation to Coronavirus and cyber attacks. The need to incorporate these exclusions into the Rules has given rise to the issue of a 2021 edition. At the same time, some further amendments have been made where it was felt that, while not altering the cover, greater clarity could be provided.
In relation to claims arising from Coronavirus and other pandemics, while the transmission of the virus itself is excluded, cover remains in place for negligence in relation to the breach of laws and regulations aimed at preventing or controlling such viruses. For example, a documentary error in complying with such a regulation would remain covered.
Liabilities arising from the use or operation of a computer as a means for inflicting harm have been excluded in these 2021 Rules. The exclusion of cyber attacks is unlikely to be of significant impact on ITIC’s professional indemnity cover which insures the performance of the insured services. The amendment makes it clear that cover is not prejudiced because the performance of those services involves a computer. The full wording of the exclusion appears as Rule 13.36 entitled cyber attack.
Since 2016 ITIC has offered a 3rd party cyber liability endorsement. The endorsement was a simple addition to the professional indemnity cover and was restricted to damage caused to third parties as a result of the unauthorised use of the member’s computer network. More recently specialist insurance cover has become widely available. Products provide cover for damages to the insured’s own networks and include specialist cyber crisis management services. These are not areas where ITIC can offer expertise and accordingly it is felt members should seek cover from a dedicated cyber risk provider. In the circumstances it has been decided not to offer any further cover on the basis of ITIC’s 3rd party cyber liability endorsement. Existing endorsements will remain in place until expiry.
Please contact your account executive if you require any clarification.